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Technology Stocks : Cascade Communications (CSCC)

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To: robert marshall who wrote (2005)1/30/1997 5:06:00 PM
From: Tera Bit   of 3743
 
Hello...Bob, that is a tough call on the puts. I don't do options...if I did, it would be a tough. Having said that, I think the downside is around $38. I base that only on yesterday's trading where CSCC's peers were down while CSCC was stable. Thus baring any bad news (market or CSCC), I would expect CSCC to make a slow steady recovery. I think all expectations of a strong Q1 have been dashed... so we won't likely get killed if they just meet their numbers.

There was an article in the Saturday Boston Globe regarding CSCC. It appeared as though the CFO thought 10% sequential growth was resonable to expect for Q1 and 56% growth for the year. (i.e. $1.10/share) Given those numbers, the conservative nature of management, and what I know about the companies products, I think the stock is under priced.

Hope that helps.

Daniel
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