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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (6917)	9/20/1999 9:17:00 PM
From: Ted The Technician	Read Replies (1) \| Respond to of 8358

I noticed a few "negatives" regarding CS's earnings. CS achieved its earnings target by significantly cutting back on R&D. The number of shares increased 8% quarterly. At this point, the 30-40% revenue growth projection doesn't really mean much considering that it can probably be achieved by issuing more shares and acquiring companies. The rate of growth of earnings is difficult to project. It is difficult to understand the significance of the 200% growth for the new switching product without knowing the revenue base of that product and how the old product line is doing. The sequential quarterly growth in revenues is not exciting at all. I remember CPQ's old CEO at one time made a grand revenue projection without an earnings projection. One must be careful.