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

To: John Ritter who wrote (2510)	12/4/1997 10:06:00 AM
From: Michael Hart	Respond to of 8358

[ Thinking positive ] Remember when Bay networks actually LOST $175 Million on $500 Million in sales in Q4 of last year and didn't go out of business !!!!! Come on now, Cabletron has had a slow down in sales during this fiscal year but you gotta keep it in perspective: 1. Cabletron has maintained profitability through all periods. 2. There is significant value ( $) in the Cabletron product line to existing/potential customers and a slew of potential acquisition candidates. 3. $450 Million of cash on hand. ( oh yeah, and their making profits ) 4. New INCENTED management team. 5. VERY loyal customer base. 6. New channel via the DEC acquisition to the tune of $400 to $600 Million in NEW revenue. ( oh yeah, and their making profits ) 7. Between cash on hand, assets, and the Spectrum product alone I would estimate the book value at $15 per share. 8. The networking market is growing @30% per year. I'm sure I could come up with more given more time. I believe that the stock should be adjusted for the latest news but has been overly reduced due to major funds DUMPING shares. The fund managers understand that the stock is probably going to be flat for 3 to 9 months and in their business that's dead money that they need to put somewhere else. There was approximately 25% of the float on Cabletron stock traded in the past two days which should be enough new shareholders to hold the price at this new base level. The stock will now be priced based on the companies future which will be decided by the remaining team of Cabletron employees and the new management group. It seems to me that there is plenty of room for optimism based on a company with an excellent product, a growing market and continued profitability. Go Tron, Mike ( Oh yeah, did I mention this company is still making profits )