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

To: danofthebes who wrote (7640)	2/16/2000 9:43:00 AM
From: architect*	Respond to of 8358

I bought back my full position in CS,, $35 looked good. Short term target is $45-$50 from the Goldman Sachs and others. I am guessing Goldman Sachs is in the process of preparing a full research evaluation on Cabletron as four independent spin off companies. The four spin offs should increase the markets awareness of each of Cabletron four business lines. Cabletron trades at 4.5 price / sales. New valuations will be modeled with industry competitors similar to each of the spin offs. Also the spin offs will be better postitoned for complete acquisitions. The CBS Marketwatch news release predicts $10 Billion Mkt. Cap or $54 share. Spin offs - valuation of competitors. 1. Riverstone Networks, Patel said he hoped the newly christened Riverstone, the high-end equipment arm, would fall somewhere between Foundry Networks and Juniper Networks. Foundry FDRY trades at 113 price/sales Juniper JPNR trades at 193 prices/sales. CS trades at 4.5 price/sales. 2. Enterasys Networks will provide networking equipment competing with Cisco. CSCO trades at 31 price/sales CS trades at 4.5 price/sales 3. Global Network Technology Services. IT consulting and systems integration. Design, performance, management and security of large complex networks. I looked at Information resource Engineering IREG. IREG trades at 11 price / sales. CS trades at 4.5 price / sales. 4. Aprisma Managment Technologies, Patel compared Aprisma--the management software spin-off--to network management software maker Micromuse, In the past year Micromuse's stock has jumped sevenfold, from $31 to $214. Micromuse MUSE trades at 53 price/sales CS trades at 4.5 price/sales I am sure Wall Streeter analyst much smarter than I, are compiling these valuation models. Apparently investors need an easy to read research report. When these updated research reports "hit the street", and Aprisma is spun off as the first IPO. IMO the price of CS will be much higher.