Cascade Communications (CSCC) Message Board

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Technology Stocks : Cascade Communications (CSCC)

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To: (no name provided) who wrote (1947)	1/27/1997 7:44:00 PM
From: Lyle Abramowitz	of 3743

If you pardon my jumping in, IMO, CSCC's management was in a very difficult position. They saw what happened to the price at last quarter's earnings and knew for sure that if this quarter's sequential earnings growth was disappointing (relative to expectations priced into the stock)the shares would plummet. So they may have decided to gamble that they could get by with taking a bulge in receivables. When that failed, they may have been no worse off than if they would have reported weaker earnings. As it was, the sequential earnings growth produced was inadequate to support the recent high share value. Now they have another quarter to try to post better results. If it turns out that they have cannibalized next quarter's results... Lyle

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