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Technology Stocks : FORE Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Captain Jack who wrote (11493)	4/5/1999 1:26:00 PM
From: Trevor Goodchild	Read Replies (3) \| Respond to of 12559

More support for 50. Let's say CSCO bought FORE's 575M cash flow. What is that worth to CSCO? CSCO trades at an 18.1 P/S so that would add $10.4B to CSCO's market cap. $10.4B divided by FORE's 81.2 M shares equals $128 per share. I'm not saying that CSCO would do this or that if they're even in the game, however, you can bet the acquiree is aware of these types of arguments. The only reason a company becomes an acquisition target is because their valuation relative to the acquirer is bargain basement.