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

To: 4finger who wrote (3191)	3/16/1998 11:27:00 AM
From: Arnold Layne	Read Replies (3) \| Respond to of 8358

4Finger, This company has been my Biggest mistake ever! It has cost me at least $250,000. I got in, in the low $30's and then bought more based on fundamentals, viewed probably in much the same way the Blooomberg survey looked at value. I have not given up yet, but my faith is not real strong at this point. In any case the following article in Telecommunications seems to give one some sense of what is happening. Hope you enjoy it. telecoms-mag.com Ineterested in the comments of any industry folks.

To: 4finger who wrote (3191)	3/16/1998 11:19:00 PM
From: Checkmate!	Read Replies (1) \| Respond to of 8358

4finger, I agree; as I stated earlier, opinions substantiated with fact are always encouraged. I too would like to see GWM elaborate on what he considers are weaknesses in CS's strategy/product mix moving forward. We've all glanced in that "rearview mirror" and came to the same conclusion; that Benson and Levine relied too heavily on the "built-here" mentality regarding technology, were late to expand outside of the enterprise space, and failed to supplement their direct sales force in a ever competitive and consolidating industry that has recently dealt with it's first lull in demand. Despite reporting a compounded 71 percent revenue growth and 84 percent earnings per share growth since 1986 and having outperformed the S&P 500 for most of this decade, CS has underperformed it's networking brethren. As all too often is the case, founder's own success can cloud their judgement of maximizing shareholder value as they become too close to the company they build. Levine and Benson, who both ranked in the top 20 of Forbes 1997 Technology's richest, (See: forbes.com were adamant about sticking to the aforementioned strategies, and all too often neglected or alienated Wall St. and the channel. Hindsight is 20-20. So why am I bullish on CS? Enter Don Reed (see impressive resume below) who brings a seasoned "Corporate America" philosophy, who understands shareholder value and how it is intricately linked to the Street game and corporate marketing /branding; In case you hadn't noticed, it's very similar to John Chambers strategy since taking the CSCO helm in early 1995. And it's no wonder why. There's a reason Chambers made the cover of Forbes ASAP recently. (See: forbes.com. Reed's "solutions focused" strategy includes targeting other "sweet spots" of the networking sector, acquisitions and partnerships where necessary to supplement product and distribution voids, building a channel presence, a marketing/brand overhaul, and vowed to grow CS's over-neglected international presence. When you combine this with CS's renown technology, (hardware that has consistently garnered the highest satisfaction and performance honors and the industry's most comprehensive platform for network and systems management in SPECTRUM), a large installed base in Fortune 1000 companies, zero debt, +/- $400 million cash on hand and a downside risk value of $9.69/ book value of $7.69, I see little downside from here and a potentially huge upside should/when Reed begins to execute. Imho Reed's resume: -Prior to joining Cabletron, Reed directed NYNEX's regional, national and international government affairs; public policy initiatives; legal matters and public relations as president and group executive. -Reed is involved in the global public policy effort to promote the information infrastructure. To that end, he participated in the Business Roundtable efforts of the G7 Information Society Summit held in Brussels in February of 1995. -Reed serves as a Commissioner of the Global Information Infrastructure Commission (GIIC) and is its Policy Task Force co-chair. (The GIIC is a multinational, multisectoral group comprised of representatives from developing and developed nations whose goal is to promote communications development throughout the world). -Reed also chairs the Executive Committee of the U.S.-Thailand Business Council, a Bi-lateral business council that serves to promote trade and investment between the two countries. -Reed was president and CEO for NYNEX in New England since 1993. -In April 1991, he was elected Executive Vice President and Chief Operating Officer of New England Telephone. Well rounded outside of the front office: -In the community, Reed is a strong advocate for youth, particularly young people at risk. As Chairman of the Sports Museum, Trustee of the Museum of Science in Boston, President of the Boston Minuteman Council, and Board member of U.S. First, he is involved with creating innovative opportunities to educate and engage youth. -Mr. Reed serves on the NYNEX Telecommunications Board and is an active member of the Boston Coordinating Committee, Jobs for Massachusetts, the Massachusetts Business Roundtable, the National Planning Association, The New England Council, The Paul Revere Corporation, The Phoenix House, The Commercial Club of Boston, Friends of Post Office Square, Museum of Fine Arts Boston, Northeastern University Board of Visitors, and the Center for Business Ethics at Bentley College.