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

To: Jonathan C. Williams who wrote (4086)	6/22/1998 5:50:00 PM
From: Rob Skaff	Respond to of 8358

Manufacturing efficiencies almost 10 fold from last year w/o any capital equipment and 200 less people. Still after the activity today it seems more apparant that something is up. It almost seems like CS is trying to avoid takeover by purchasing all of these companies. The market must have known they were going to miss earnings, but the activity didn't show it. Options acted well, and the stock was a champ. Something is up! We'll have to see the action tomorrow. That will tell all!!!!

To: Jonathan C. Williams who wrote (4086)	6/22/1998 5:51:00 PM
From: H-Man	Respond to of 8358

CNBC, Maceo Sloan, in response to a question says CS is a possible takout candidate, due to industry consolidation...LOL usual caveats followed

To: Jonathan C. Williams who wrote (4086)	6/22/1998 5:54:00 PM
From: Harold S.	Read Replies (1) \| Respond to of 8358

Any questions about todays aquisition and what it does for CS??

To: Jonathan C. Williams who wrote (4086)	6/23/1998 12:21:00 PM
From: Doug	Read Replies (2) \| Respond to of 8358

J.C.W:Your take on the cc seemed more +ve than the rest. In order to evaluate the details could you clarify what GM and Fx represent. I was not able to find any ref to those terms in CS's Income Statement. I shall get back after hearing from you. Thx. (Fx-- Foreign Xchange perhaps)

To: Jonathan C. Williams who wrote (4086)	6/23/1998 3:23:00 PM
From: Doug	Read Replies (1) \| Respond to of 8358

J.C.W: I looked once more at your take of the cc. Here at-last are my comments. Existing Report for Quarter. Sales--------------366m Cost of Sales------210m Gross Profit-------156m R&D----------------54m SG&A---------------97m As their Gross Profit is >40%, why would they lower their sights to 40%. In fact, they should increase it to 45%. As for SG&A, they could still cut some of the excess 3% fat (Cisco should be the norm). As forR& D, this indeed is the wild card. I have no idea what is the norm. It must surely be a spike function and not a constant one for all eternity. There are many ways to deal with this wild card. If they can increase Sales and cut back on R&D expenses, this Company is off and running. Infact, if they have all the R&D expenses under control, the earnings could be quite good. All in all, I would agree the projections are +ve and I would give them more than a 50% chance to succeed. By floating off an Affiliate, they can subsequently get the R&D funding back from retained Earnings . In any case on a take over basis, it is sales that matters. The P/S is generally the deciding factor. Currently take-overs are made on a P/S of near 3. On that basis alone, CS is definitely a value play.