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Technology Stocks : Cabletron Systems (CS: NYSE)

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To: Captain James T. Kirk who wrote (5928)4/21/1999 1:21:00 PM
From: Area51  Read Replies (1) of 8358
 
Even a CSCO takeover rumor isn't good for a quarter of a point on this pig ?

Seriously, I think a CSCO takeover would only be seen as a means to eliminate competition so CSCO could increase the price on its mediocre equipment. Still it is fun to think about. Let's see the market values CSCO at about 16 times revenues and CS at about 1 times revenues. I say let's cut CSCO a break and let them have CS for only 10 times revenues or $80 per share.

I think CS has made it abundantly clear that they aren't interested in a $10 dollar buyout so they're going to have to increase their market cap the old fashioned way by increasing revenues and earnings.

Regards,
Garry

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