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This was forwarded to me. FYI.
Harley Meyer
----- Forwarded Message Starts Here -----
From: stocktips@xxxxxxxxxxxxxx
Date: Sat, 17 May 1997 14:18:33 -0700
To:
Subject: DTO STOCKTIP ( PAIR )
Dear Subscriber:
THE FOLLOWING INFORMATION WAS SENT TO DAY TRADERS ON-LINE VIA
THE PUBLIC STOCK TIPS WEB PAGE.
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* NOTE: THIS INFORMATION WAS SENT FROM THE DAY TRADERS *
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Date : Saturday - May 17, 1997 at 14:16:40
Source : NoFear
Security : PairGain
Ticker : PAIR
Exchange : NASDAQ
Current $ : 17+
Target $ : 20+
Position : BUY
Time frame : this week
Reliability : Unknown
Could be the upgrades have already started??
LOS ANGELES TIMES STORY 1 PAGE 1 OF 3
06:45 PairGain Shares Tumble 18.3% in Heavy Trading
Manufacturing: Tustin firm's stock dips to 13-month low on fears of
price cutting in the telecommunications industry.
Publication Date: Saturday May 17, 1997
Page D-1
Los Angeles Times (Orange County Edition)
Copyright 1997 / The Times Mirror Company
By JOHN O'DELL
TIMES STAFF WRITER
TUSTIN -- Shares of PairGain Technologies Inc. plunged to a 13-month low
Friday after an analyst--who likes the stock--said in a report that the
company's annual revenue could fall because of price cutting in the
telecommunications equipment industry.
The manufacturer's shares fell $3.875 to $17.25, an 18.3% decline, in wild
trading that made it the nation's most active stock Friday. A total of
19.1
million shares of PairGain common stock changed hands in the Nasdaq
market.
Analyst Chandan Sarkar of SoundView Financial Group in Connecticut said he
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LOS ANGELES TIMES STORY 1 PAGE 2 OF 3
was perplexed by the reaction to his report.
Charles McBrayer, PairGain's chief financial officer, blamed the heavy
trading and slumping stock price on "people who are trading on second- and
third- and fourth-hand information."
The company, which makes products that improve the quality and speed of
data transmission over standard copper telephone wires, is facing
increased
competition and a round of price cuts that are steeper than usual in the
industry, Sarkar said in his report.
But while his self-described "caution flag" sent investors into a selling
frenzy, Sarkar says he continues to recommend PairGain as a stock to buy.
At least one other analyst agrees.
"The price it is at right now is too low a price for PairGain," said
Charles Pluckhahn, an analyst at Dain Bosworth Inc.'s Seattle office. He
said
he believes the stock is worth at least $30 per share.
PairGain stock traded at a high of $42.50 a share in late January but has
fallen on concerns about the company's performance and about overall
industry
performance, analysts say.
While the company's sales might decline this year, Pluckhahn said, profit
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LOS ANGELES TIMES STORY 1 PAGE 3 OF 3
margins in the industry have been higher than usual in recent quarters, so
the
price cutting now "should do no more than bring margins back down to
normal."
He said he believes the company's stock is being battered by "momentum
investors" who buy when a stock is moving up and sell as soon as there is
any
hint of a slowdown in the company's performance.
Analysts expect PairGain to earn 79 cents a share this year, or about 55%
more than its earnings last year of 51 cents a share. First-quarter sales
of
$70.7 million rose 75% from year-earlier sales of $40.5 million.
(END)
06:45 EDT May 17, 1997
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----- Forwarded Message Ends Here -----
Harley Meyer
meyer093@xxxxxxxxxx
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