The Thread Formerly Known as No Rest For The Wicked Message Board

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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

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To: 2ripley2 who wrote (79819)	12/18/1999 5:44:00 AM
From: kfdkfd	Read Replies (1) of 90042

CS comments on Monday earnings individualinvestor.com (12/20/99) When Cabletron Systems (NYSE:CS - Quotes, News, Boards) reports earnings on December 21, the company's executives could have some intriguing comments for investors. The beleaguered purveyor of networking equipment has seen its share price soar in recent weeks. The company usually tops consensus estimates by $0.01 to $0.03 a share, and this quarter should be no exception. But even if the company comes in at the high end of the $0.07-$0.13 a share range, it will have nothing to crow about, as sales and profits have been stuck in neutral for more than two tears. But management commentary on the conference call, especially regarding the prospects for a spin-off of the company's fast-growing software unit, could light a fire under the stock. That move, coupled with a recent $1.1 billion sale of its FlowPoint router division, will strengthen the balance sheet and make the company more of a pure play. The focused business strategy could be a prelude to an eventual sale of the company. Whether the recent price rise in the stock already discounts these moves remains to be seen. One thing is for sure, though, a weak quarter in the company's core business could send the shares back down 30% to 40% to October trading levels.

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