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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (28625)	5/29/1998 5:32:00 PM
From: PaperChase	Read Replies (1) \| Respond to of 132070

MB. Let's face it, a good percentage of the "investors" are slow which frustrates us bright people. >>You write of inventory so it is now carried at zero cost. Nobody cares about the writeoff because they ain't too smart. << Diamond Multimedia (DIMD) makes huge inventory write-offs. No problem except its EVERY year not just once in a great while. Their profitability is absolutely fantastic in the quarters following the write-off. (Diamond is getting ready to write their inventory down again this year.) You would think even the fast minded bulls would catch on but they can't seem to ignore those great "earnings" numbers in later quarters. So my question is, do you think this same game will play out in Cabletron (CS). They had mega write-downs last quarter and I'm thinking of "running with the bulls" when CS surprisingly returns to profitability this quarter. I can almost hear the CNBS talking heads now "Cabletron is leading the recovery today in networking stocks. Today Cabletron beat the street estimate for earnings indicating a strong recovery in its business." (I'm thinking of out-of-the-money calls not an outright equity purchase.)