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

To: max power who wrote (31116)	5/8/1999 4:10:00 PM
From: thebeach	Respond to of 36349

I am fairly new at PAIR and need some opinions as to what is a fair price for each share,thanks.I took a fairly large position this week so I will be a good cheerleader.

To: max power who wrote (31116)	5/8/1999 6:41:00 PM
From: FirstDiogenes	Read Replies (1) \| Respond to of 36349

Thanks thomasj! We're on the same page I think. $25.00 is chump change to own the preemptive technology for one of the two channels of Internet/E-commerce and communication. My analogy would be this: PAIR has invented the most efficient and economical railroad tracks ever seen. The "railroads" RBOC's and others recognize it and will buy it to stay competitive. If they want to buy the technology by buying the co. they (and HOPEFULLY Pair Mgt.) will value it not on the basis of its cost but on the value of the "freight" (communication) that those railroad tracks can carry. And keep in mind the Internet is a medium with (for all practical purposes) unlimited capacity. If that is the case, then the potential value of the "freight" (or the profit potential inherent in the capacity) is unlimited. This is very brief and simplistic argument, but on the basis of this analogy my buy-out valuation would be $60.00 a share. RATIONALE: The buy-out price should be higher than the stock has ever traded and PAIR has traded at $48.00 when its fundamentals (preemptive technology)were not nearly as strong AND the merger & acquisition activity was NOT spuring a movement toward this technology as a means for many players to stay competitive. I'd welcome your comments on my SWAG.