Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Thomas George Warner who wrote (2610)	12/10/1997 1:33:00 AM
From: blankmind	Read Replies (1) \| Respond to of 8358

Class Action Commenced by Kaufman Malchman Kirby & Squire, LLP Against Cabletron Systems, Inc. Tuesday December 9, 8:16 pm Eastern Time Company Press Release SOURCE: Cabletron Systems, Inc. NEW YORK, Dec. 9 /PRNewswire/ -- Kaufman Malchman Kirby & Squire, LLP today released the following: To: All Persons or Institutions Who Acquired Common Stock of Cabletron Systems, Inc. Between March 3, 1997 and December 2, 1997: You are hereby notified that on December 9, 1997, a class action complaint has been filed in the United States District Court for the District of New Hampshire on behalf of all purchasers of Cabletron Systems, Inc. (NYSE: CS - news; ''Cabletron'') common stock between March 3, 1997 and December 2, 1997, inclusive (the ''Class Period''). The Complaint charges Cabletron and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. Among other things, plaintiff claims that defendants issued releases, statements and reports which misrepresented Cabletron's business prospects and inflated the market price of its common stock throughout the Class Period. The Complaint further alleges that it was the purpose and intent of Cabletron and the individual defendants in issuing the false statements and reports, which contained misrepresentations and omissions, to deprive purchasers of Cabletron stock of the true facts regarding the ability of the Company to manage the production of its newly introduced ''SmartSwitches,'' the ability of the Company to supervise its European sales force, its market share and competitive position, its lag in shifting to new, faster technology for transmitting between networks, and difficulties arising from management changes and new acquisitions. As a result of defendants' misrepresentations and omissions, Cabletron's stock traded as high as $46.50 per share during the Class Period, before plummeting to below $16 per share when the truth was finally revealed. Plaintiff seeks to recover damages on behalf of himself and all other purchasers of Cabletron common stock during the Class Period, excluding the defendants and their affiliates, and is represented by Kaufman Malchman Kirby & Squire, LLP. Kaufman Malchman has specialized in complex litigation, including securities and consumer class actions for more than half a century. It has repeatedly demonstrated its expertise in this field, and has been repeatedly recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. Its achievements and quality of service have been chronicled in published decisions, and the firm's efforts have been responsible for significant recoveries, or injunctive relief, for its clients and class members. If you are a member of the Class described above, you may, not later than 60 days from the date of this notice, move the Court to serve as lead plaintiff of the class, if you choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact: Jeffrey H. Squire, Esq. Ira M. Press, Esq. KAUFMAN MALCHMAN KIRBY & SQUIRE, LLP 919 Third Avenue 11th Floor New York, New York 10022 212-371-6600 or Toll Free No. 888-529-4787 kmkslaw@aol.com (e-mail address) SOURCE: Cabletron Systems, Inc.

To: Thomas George Warner who wrote (2610)	12/10/1997 8:58:00 AM
From: John Ritter	Read Replies (1) \| Respond to of 8358

I've been hanging on to CS since the fall, when's it gonna start smoking upward?

To: Thomas George Warner who wrote (2610)	12/10/1997 6:18:00 PM
From: John Ritter	Read Replies (1) \| Respond to of 8358

CS is going down and I can't afford anymore, I mistakenly thought 15 was a good deal, I hate it when they drop further, course considering the big fall this is peanuts, looks like I'm stuck for the winter.

To: Thomas George Warner who wrote (2610)	12/10/1997 10:15:00 PM
From: Miles Rhyne Hoffman, CFA	Read Replies (2) \| Respond to of 8358

Well "Billy," my data is from the Value Line database: last 8 qtrs: past to now: Sales= %chg yr/yr, others are "margins" Sales 31% 31% 32% 30% 31% 15% 10% -7% (last=co.est for Nov 97) G.Mgn 62% 63% 64% 63% 62% 63% 62% "lower" (no specific # yet) SGA 19% 20% 20% 20% 21% 22% 23% "higher" R&D you've seen... it's consistently higher Depreciation 2.4% 3.4% 4.2% 3.3% 3.3% 4.9% 4.8% "???" (%sales) Pretax Mgn 31% 30% 29% 29% 28% 25% 23% "way-down" For non-accountants, the above translates: Sales gains are slowing and have turned negative (lower yr/yr) Cost of hardware is going up (gross mgn is going down). All other expenses are going up. The company is making a lot less money (on the margin). And "Billy", actually the tax rate is slightly down recently. A major goal of companies is to turn product (inventory) into cash (sales). Therefore the inventory to sales ratio is an important barometer of the success of achieving this goal. The more capital (money) you tie up in inventory, the less efficient you are... Inv/Sales 31% 36% 40% 45% 45% 51% 52% 51% 49% 49% 51% 65% "???" (recent=n/a ; more data given to show bottom of ratio in 11/94) Cabletron is turning inventory into sales at a much SLOWER rate. Cabletron looks cheap... looking backwards. I try to look ahead. I'm not "smoking" anything and don't need to...I don't own the stock.