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

To: Teflon who wrote (4117)	6/22/1998 9:52:00 PM
From: Norman Klein	Read Replies (1) \| Respond to of 8358

Teflon, nice post in yahoo I am taking the liberty of reposting it here (hope that you don't mind). Thought that it was one of the more intelligent analysis on Cabletron. To the case at hand, however, I suggest most of you (my fellow CS shareholders) think seriously about where CS is headed and WHY CB is doing what he is with these acquisitions. I understand that to most of us it appears that he is behaving rather oddly and is spending time and energy on acquisitions and other activities as opposed to stuffing the channels to reach that magical ".06$/shr" number the street was "asking for". I stress the "ASK" here! Having worked in the investment for many years (specializing in the high tech industry) I will tell you that CB has CS exactly where he wants it. I am sure when he retook control of CS, he assessed exactly what his alternatives were as far as maximizing shareholder value (and his personal wealth) with respect to both long term and short term horizons. CB is executing a gameplan to the "T". Without a doubt CB could sell CS in a firesale today. Instead, he has chosen to fill product line gaps, replace outdated technology, cut staffing and overhead costs, reduce inventory levels and lead CS back to the days of 40% Gross Margins. This is all about greed. It is always smart to pay attention to a situation like this when the principal individual involved has this much on the line (namely $$$$$s). CB is doing all the right things. Our biggest concern should not be whether CS opens down tomorrow (as it probably will), but for those of us with spine, can we trust in CB six to nine months from now to sell his baby at the right time??? Or will he then decide to follow the other great motivator for people like us, EGO, and try to take CS to the next level to compete with the big boys. That's when I'd start to get concerned. Thanks, Teflon