Cabletron Systems (CS: NYSE) Message Board

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Technology Stocks : Cabletron Systems (CS: NYSE)

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To: Miles Rhyne Hoffman, CFA who wrote (2620)	12/11/1997 12:04:00 AM
From: Thomas George Warner	of 8358

Who is "Billy"? If you are going to use valuline data than you should use all of it. They still rate CS as 3 for timeliness with potential of 130-235% increase over the next 3-5 years. By my calculations that is more than a double. I think that you are missing a valuable point relative to what an investor should be trying to accomplish. Are you trying for a home run every time or are you trying for consistent returns. In my case I do carefully analze the stock and buy when I think there is a good chance for a profit. I have heavily invested in CS starting at $19, and will start buying more if it hits $14. In the case of CS the historical and future upside/downside price ratio is excellent. Debt free. Excellent products new management Officers and Directors own 25% of the common stock. If you are using valuline data remember that it is massaged by their analysts. the smart investor always looks back before he looks ahead. past performance is an excellent indicator of future performance. analysis compares FY quarter to FY quarter, not successive quarters. With respect to product turnover into cash I do not agree if I understand your definition. What IS important, is product turnover versus cost, calculated by taking the cost of goods sold and dividing by the average inventory. But even that is not very important when we are investing in a turn around company, since we have to rely on historical data. I will invest in any company that has had the net profit margins over the last 10 years that Cs has, for $19/share. In summation I would suggest a good investment book to everyone "Street Smart Investing" by George B. Clairmont and Kiril Sokoloff. It details an investment logic that I like. CS seems to fill all of their criteria.

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