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

To: Doug who wrote (4158)	6/23/1998 4:46:00 PM
From: Teflon	Respond to of 8358

Doug, A little pain today will bring further gain later. If you assume that CB is gearing CS towards a play in 6 to nine months, he would not want to give the street that bone with this earnings report. CB understands that CS would get "punished" because of it as it did in today's trading, but the premium value to stock price (and his net worth) will be better served if he takes this 'unrealized profit' at a later time more closely to when he is negotiating a sales price. The positive effect of meeting the street numbers would/will be rather short lived as it is with respect to net income since revenues are essentially flat, so it is wise to keep the 'bullet in the chamber' for when it would provide the most value. Thanks, Teflon

To: Doug who wrote (4158)	6/23/1998 4:51:00 PM
From: Alex Chilton	Read Replies (1) \| Respond to of 8358

Alex:I am not going to advise you to Buy hold or Sell. You alone have to make that decision. Agreed. We all do. That's what I get for not being explicit. I see CS primarily as a take over play. I am more a technologist than a pure investor (but both pay the bills), and from that standpoint I am not long on CS. The facts about the last Q are now known. If they had decided to cut R&D they would have had near $60m profit. So why would a Company shoot itself by reducing the Profit at the expense of R&D. To me it seems like short term pain for long term gain. I infer from this that you're long. Unfortunately for me, any Tech that I've been long in has not helped the cause much (That's what blue chips are for), and the one's I've traded (eg. CS) have done me well, overall. Thanks for the comments. Alex.