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

To: B.G. Galbraith who wrote (2568)	12/5/1997 3:22:00 PM
From: Harold S.	Respond to of 8358

B.G., I agree 100% and believe the pre announcement was done far enough in advance so that the positive things the CEO will have to say on the 22nd will be able to have a positive effect on the stock. I think a lot of people, including myself, are considering buying more at this incredibly low level, but are waiting until after earnings are released. This is exactly why I may buy more before earnigns are released. I believe the market has priced in all possible bad news and that any good news, or percieved ability to turn things around, will cause at least a 3 or 4 point run up. Hopefully we will also have some new contracts coming in in the mean time. In addition, keep in mind that this stock is selling at roughly a 1.6 price to sales ratio. Compare that please to the rest of the networkers and I think you will find it to be the lowest!!

To: B.G. Galbraith who wrote (2568)	12/5/1997 4:08:00 PM
From: Doug	Read Replies (1) \| Respond to of 8358

Hi BG: This afternoon there was some short covering indicating that very fear. At $35+ the premiun is not much in terms of Sales. Their traditional bedfellow has been Nortel a major telco supplier with a decent balance sheet. My experience has been that one needs a strong CEO & CFO and an equally determined project team to handle an acquistion. Too often the consolidation phase is bungled because of personality clashes leading to cost overuns & missed schedules. I have no scorecard on how well CS or Mr Reed has handled an acquisition. We may have to wait for the DEC playout. The DEC culture <nicer than inertia> has a long tradition of its own and I am not sure they can be absorbed that easily. Newbridge ran into similar problems with its latest acquistion leading to more write-offs. In conclusion, I do not think more acquisitions will solve the immediate problems.!