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

To: jas cooper who wrote (11870)	4/13/1999 12:38:00 PM
From: Sibaris	Read Replies (2) \| Respond to of 12559

Quite the contrary! But I do have to grin, since I'm also sitting on a pile of CPQ and DLGC. Not looking good. You've got my sympathy, really. You've got to admit, it is kind of amusing; all the SI powerbrokers determining who is going to pay $42 for FORE like a game of chess. I wouldn't call it chess, it's more like Monopoly. The fact of the matter is that not one of those so-called powerbrokers knows who is going to pay $xx for FORE. The question we'd have to ask is: is FORE really for sale? IMO, unless a deep-pocketed company comes up with a substantial premium, they will not sell. For me, substantial means $50+ a share and immediate vesting of employee options. Granted, there are not many companies that wealthy out there. But on the other hand, I don't see that as a highly unlikely event, especially after seeing what CSCO is paying for GEOC (see below) and other recent M&A's in the industry (LU paying 14+ times revenue for ASND, for one). I don't think Cisco's purchase has any real bearing on the future of FORE. I agree. As I've said in the past, I don't see CSCO as a real suitor for FORE. But when I heard the story, for one brief instant, a $2b company....Nah! Look at it this way: GEOC reported a revenue of $45 million at the end of December 1998 (SEC 10-K), and now CSCO is buying them for $2 billion. If my math is correct, that's 45 times revenue. Then you've got to look at it from the bright side as it sets an interesting precedent, doesn't it? Man, try some optimism, for a change... Good luck to all.