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

To: Sparky65 who wrote (3694)	5/26/1998 4:34:00 PM
From: J Bertrand	Read Replies (3) \| Respond to of 8358

sparky, why do you think it looks so bleak at Cabletron? So many tech stocks have had 50%-70% and more selloffs including Applied Materials, CPQ, IFMX, ORCL, EMC, DELL, and etc. It happens. Right now the techs are correcting again. Why do I like Cabletron? 1. CEO is aligned with shareholders. He has already lost 10's of millions and stands to lose even more. Also, he is embarrassed by CS's poor performance. 2. Yago 3. Have had over 30 quarters of meeting or beating expectations. Managment knows how to please Wallstreet. 4. Cabletron is one of the big 4. 5. Cabletron has 500 million in the bank. Can survive for over 2 years without another order. I think that is pretty strong. 6. New channel strategy. 7. Stock is down from 46. How much lower can it go? Really. 8. Price to sales ratio is about 1.2...way lower than other networkers 9. If Bay gets purchased at $40 which would be 9 billion dollars for 2.2 billion in sales...Cabletron is worth 6-7 billion which puts Cabletron's stock price in the high 30's to low 40's in a buyout. 10. I see them being either successful on their own or purchased. The company is too strong for any other scenario. 11. Analyst expectations are so low that it should be easy to beat them. 12. The whole technology industry seems to be pointing toward everything being networked. If this is true, Cabletron is right in the center of the storm. 13. Craig Benson is very cost conscious. Almost to a fault. I like that! 14. Digital channel. I see this investment as a no brainer. Doesn't mean it can't go any lower. What it does mean is that a patient investor will eventually hit it big with an investment in Cabletron. Just my opinion. Best wishes Jeff Bertrand