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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (60873)	9/19/1999 1:25:00 PM
From: Dolfan	Read Replies (3) \| Respond to of 90042

Hello Tim! I thought this was a good post from the Yahoo thread regarding what has transpired at CS and the dressing up of the company that is taking place. If this is anyone on this thread good post. Watched CS for years. Great company that fell on hard times (and deservedly so). I dove in with both feet in January when the price was in the $8-$9 range. Everything that the company has done since January has been geared towards sale (as well as rebirth): * Hired Merrill Lynch to sell. I don't know if it was rumor or fact, but it appears true in the rebirth of the Phoenix; * Next, Benson announced that he would consider selling the company, which was a monumental concession on the part of Benson; * Agreement to outsource manufacturing (in one form or another); * Benson announces he is retiring (an even bigger concession); * Patel takes over the reigns of CS with a vested interest in the success/survival of CS and it's premier products/service, which Yago play's a key role. Patel wants to see his switches and technology survive long-term with CS or through a new partnership with a bigger operation; * CS suddenly and unexpectedly settles a long-standing dispute with the SEC and cleans up the books with no further arguments; * Spectrum is announced as a distinct operation and a potential spin-off (a potential marketing strategy or threat to buyers); * An intense marketing campaign to promote CS is the biggest in their history (and continues to this day) to get the CS name out to the markets and to Wall Street; * 1st quarter operating results (before charge-offs) were better than expected. Of course, Wall Street was not impressed and the stock stepped back. Analysts want CS to put together at least 1 more solid quarter, which is critical to any buy-out; * Products continue to win praise on many fronts and positive comments from many customers (though some formers jumped ship); * Stock price began a dramatic climb for a variety of reasons, but this is essential to any buy-out at the "RIGHT" price (the stock has to be over $20+ in order to sell above $30+ at a 50% premium, which is a fair price for this operation). * Wall Street joins the parade by increasing the target price for CS and listing "buys" and "strong buys". This is another key piece since any potential buyer needs to have the blessing of Wall Street to prevent their own stock from taking a bath. The upgrades provide credibility to any potential buyer! Think of Fore, Bay, Ascend, Fore, Xylan, etc and you now know the future path for CS. The stock may take a slight fall on Tuesday after the earnings are announced, but don't be fooled by this setback because this company IS and HAS BEEN marketed for sale since January 1999 (just looking for the RIGHT price)!