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Technology Stocks : Cascade Communications (CSCC)

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To: Elmer who wrote (2769)3/8/1997 1:35:00 PM
From: Andrew Q. Viet   of 3743
 
Hi David:

Your post is one of the best I've seen. Congratulations.

I would like everyone to focus on days sales outstanding of CSCC in comparison with others.
I think this is very crucial in determining weather it is time to invest in CSCC or not.
Look at it again:

Table 12
DAYS SALES OUT
Qtr.
Ended ASND CSCC CSCO NTAP SHVA
Dec-96 69 88 69 56 73
Sep-96 76 66 58 58 96
Jun-96 77 85 55 43 83
Mar-96 69 67 55 42 71
Dec-95 76 54 60 44 71

You see DSO for CSCC is highest in the latest quarter. However, the pattern is not consistent,
suggesting the cyclical nature of their business. If their business is indeed cyclical, we can
afford to wait for at least one more month before buying it.
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