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

To: Clare who wrote (2452)	12/3/1997 7:27:00 AM
From: Tom M	Respond to of 8358

Morning all. Some fundamental facts about the network co's: P/E* Price/Book CS 9.3 2.0 (price/book @ $15 3/4 price) COMS 19 4.0 (all other price/book as of last week) BAY 48 4.9 CSCO 40 12 P/E's based on yesterday's price & last 12 month's earnings Data from Etrade company profiles via Hoovers. CS's price/book was at a historic low a couple days ago at 3.3X. After yesterday's selloff, it dropped to a major new historic low of 2X. (Note CS's P/E will soon go higher when this Q gets added in & the previous year's quarter gets taken out, but the other's P/E's will most likely also increase proportionally this Q). Takeover rumours generally start about 1X, however book values in this entire industry are over valued, or at least most still are over valued ;-) Only monopolies can sustain such high P/B's, IMO. This morning we hear COMS will show a "slight profit" for the Q. I'm sure the above table will have to be updated tomorrow. I wouldn't buy any of the others until they take their over due hit based on high valuations, IMO. regards, Tom

To: Clare who wrote (2452)	12/3/1997 9:35:00 AM
From: Vladimir Zelener	Respond to of 8358

<< I think Cisco has broken away from the pack already. >> Conner was the leader in the hard disks manufacturing, ahead of the pack, but had problem in one phase of technological transition and got destroyed. Borland was number 2 software co with stock price climing to $80 and now several years later it is only $9. Dell at one point stumbled while developing portable computer and nearly became just another AST or ALR. My point is to be ahead of the pack is good beginning but it does not mean you are a sure winner for the next 5 years unless you are (or became) a monopoly like Microsoft or Baby Bells. In networking the leader IMO still can change. LU for instance could buy ASND and CS or BAY and become a new Networking monopoly.