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

To: Doug who wrote (3234)	3/23/1998 4:24:00 PM
From: craig crawford	Read Replies (2) \| Respond to of 8358

16:16 [CS] CABLETRON SYSTEMS LOSES Q4 OPER 4C DILUTED VS OPER PROFIT 45C. 16:16 [CS] CABLETRON SYSTEMS LOSES Q4 OPER NET 4C DILUTED, EXCL CHG $1.63 CS will surely go up tomorrow. That's what happens to stocks that disappoint these days.

To: Doug who wrote (3234)	3/23/1998 11:01:00 PM
From: Checkmate!	Read Replies (2) \| Respond to of 8358

Doug/Arnold, Check out my Reply #3199 as far as my past and present observations on CS. How do I see CS faring? Well that all depends on how well/fast Reed can execute his strategy in the face of fiercely competitive players in a rapidly consolidating and converging industry. It won't be a cake walk, but it's certainly doable should he stay the course. Reed is just beginning to realize some fruits of his labor regarding a somewhat warmer reception on Wall St.; a category CS has severely lagged in the pre-Reed era. Even with an earnings streak of 32 consecutive growth quarters in which CS met or beat the street, Wall St lopped off a whopping 1/3 of it's market cap the first time they pre-announced last June and did so again in November. According to our friend Mr. Armacost, since January '97, six of the seven largest networking companies have reported an earnings shortfall at least once, and three of the Big Four (CS, Bay, and COMS) have again either announced or guided the Street significantly lower within the last few weeks. Yet BAY and COMS have actually traded higher in the face of this news while CS has had to face the full wrath of the street. How important is it to have the Street on your side? Check out this write-up on COMS in Briefing today: <<<3COM CORP. (COMS) 34 15/16 +1 3/4. Want to warn analysts of lower earnings, but keep your stock price from crashing? Take a lesson from 3Com Corp (COMS). The networking company is due to report earnings after the close on Tuesday for 1998 fiscal third quarter earnings (FEB). A little over a week ago, the company was expected to earn $0.35 a share for the quarter. Since then, the company has reportedly been guiding estimates sharply lower in talks with analysts. Now, the consensus estimate calls for only $0.14 a share earnings. Yet, the stock is barely down from a 1998 high of about 37. Imagine where the stock might be if COMS had come out with a specific warning announcement. Still, earnings of just $0.14 a share would be paltry compared to year ago profits of $0.50 a share. This is hard to ignore, even though the market may actually get excited tomorrow when COMS "comes in at expectations" or even "beats estimate by a penny." Now, a surprise is unlikely, and Wall Street analysts can look good, because the company has probably given a good indication of the likely report. That is how the game is played these days. The last three quarters, COMS numbers came in right in line with (revised) market expectations.>>>>> House and Benhamou never cease to amaze me with how skilled they have become at working the Street and protecting/creating shareholder value (Second only to Chambers himself, who has managed to create a stock valuation unmatched in the sector). Wall Street doesn't seem to place too much emphasis on bits and bytes; instead on mindshare, branding strategies, and who is most proficient at playing "the Street game". Imho/comments, Cm!