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

To: Harold S. who wrote (2604)	12/9/1997 6:53:00 PM
From: Rene Vallieres	Respond to of 8358

Does anyone have an opinion on the JULY 22.5 calls @ 1.25 I'd be happy to hear from anyone. Thanks.

To: Harold S. who wrote (2604)	12/9/1997 7:10:00 PM
From: Alec Epting	Respond to of 8358

I think the rumor that NT will buy CS is still making the rounds. This company would be attractive for a buyout, especially with the DEC business.

To: Harold S. who wrote (2604)	12/9/1997 8:45:00 PM
From: Doug	Respond to of 8358

Hi Spock:The volume chart shows hyper activity, which indicates we have visitors. I dont think the trader is concerned with Ipsilon or the future. My hunch is that there is a big short position and traders are nervous about their positions. Fortunately for them the entire Networking sector got creamed today. A trader is usually not so concerned with fundamentals or technology.

To: Harold S. who wrote (2604)	12/9/1997 9:41:00 PM
From: Ian@SI	Respond to of 8358

Spock, RE: Do people think this is because of the Ipsilon deal or the fact that CS is oversold and waiting to move up on earnings announcement?? By any reasonable valuation method, CS has been hammered beyond reason. It now represents an outstanding value play as long as you believe that CS will remain one of the top 3 or 4 network equipment providers. IMO. Data comes from marketplayer.com (It's free after registering) Ian. 12/08 2Yr 2Yr Est EstPE/ Tkr Price High Low P/E RelPe Book P/Bk Sales P/S LTG CS 15.31 47 14 12.3 0.64 7.77 1.97 9.44 1.62 0.54 COMS 37.50 81 24 19.5 1.01 6.57 5.70 16.96 2.21 0.72 CSCO 89.75 91 32 31.7 1.64 6.22 14.42 9.34 9.61 1.01 Note: RelPE is PE of "Tkr" relative to the S&P 500 using a 12 month forward looking time horizon for earnings. i.e. Regardless of FY end, all stocks are compared on the same time horizon. Key Ratios/Measures CS COMS CSCO 5 Year Range P/E 8 - 37 13 - 79 15 - 50 Price to Book 2 - 11.8 1.3 - 16 5.6 - 19.8 Price to Cash Flow 7.2 - 36.4 9.6 - 41 14.2 - 56.1 Price to Sales 1.5 - 6.4 .5 - 4.5 2.9 - 10.3 Return on Equity 23.9% - 33.5% 24.6% - 37.7% 33.8% - 47.6%