Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: DWCraig who wrote (30272)	4/13/1999 10:21:00 PM
From: John Stichnoth	Read Replies (2) \| Respond to of 36349

Your comment reminds me of something they said that I didn't write down. Pascoe and others were discussing where they are R&D'ng. Clear that they thought they are the leader in spending, and breadth of spending in the various DSL technologies. Mentioned, for instance, SDSL ("coming to be available" was phrase used), VDSL. The threat to DSL of course, in 5-10 years is the need for true wideband, say above 10Mps. That's where the smaller outfits will have real problems, i think. They don't have the resources to develop along multiple lines the way pair does. (and which is why I wish pair would stop buying back their shares. They might need that money later!) Earlier today, I made some comparisons. I will put them up on a separate message using fixed font.

To: DWCraig who wrote (30272)	4/13/1999 10:52:00 PM
From: John Stichnoth	Respond to of 36349

Just a quick comparison of some of the players, taken from Yahoo and updated for pair at $12: AWRE WSTL ALA PAIR ORCTF ADTN Price/Book 40.1X 7.5X ? 2.6X 7.1X 3.4X Price/Sales 129.3 3.8 ? 2.7 9.4 2.8 P/E none none 25.6 25.5 none 19.9 EPS -.11 -.90 0.98 0.47 -0.97 1.03 Mkt Cap 1.59bn 358 m 19.5bn 721m 449m 785m Shares OS 21.2m 36.4m 779m 70.4m 16.8m 38.4m Float 13.3m 15.1m 693m 52.8m 7.2m 19.2m LTDebt/Eq 0 0.06 ? 0 0 0.21 Cash 26.6m 15.0m ? 234m 47.8m 69.9m Short Ratio 4.45 3.75 4.57 2.46 0.52 4.48 This of course leaves out some important players (did I hear csco?). And the Alcatel data doesn't tell us anything. But it does show that among these companies, pair and adtn are the most undervalued--based only on these numbers, not on future products! And, in this sector, product stream is the most important component. The one area that pair stands out is Cash.

To: DWCraig who wrote (30272)	4/14/1999 12:18:00 AM
From: Bobby G.	Respond to of 36349

FWIW - I went back to the last 8 earnings announcements to see how PAIR's stock price and volume moved the day of, and the day after earnings. Here's what I found: Date Day Of Day After 7/9/97 +3/8, 6.5 mil -1 11/16, 14.5 mil 10/8/97 +5/8, 3.5 mil -1 1/16, 5.5 mil 1/29/98 -3/16, 1.8 mil +13/16, 3.8 mil 4/13/98 +25/32, 2.8 mil -2 15/16, 9.0 mil 7/13/98 +3/8, 2.4 mil -1 3/8, 9.1 mil 10/8/98 -7/32, 1.8 mil -1/8, 3.8 mil 1/27/99 -1/4, 3.3 mil -7/16, 4.3 mil 4/13/99 +2 1/4, 17 mil ? Obviously, we have to take into account that because of the differencein PAIR's stock price, the value of shares being traded is what should really be compared; but, with the exception of 7/97, no other "day of" came close to today's volume, not to mention % move up. This data leads to the same conclusion that many have already pointed out: this was not a runup in anticipation of TODAY's earnings. Good Luck to all, BG