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

To: Kiriakos Georgiou who wrote (4264)	7/1/1998 10:32:00 AM
From: Joe Steele	Respond to of 8358

I am dying to get out. I have been holding CS for more than a year and while the entire market has gone up CS has done the complete opposite. Patience I have of course, which is why I am still there. I have not looked at the balance sheet of CS, maybe someone could point me where I could look at it. However, I did read int the latest Bloomberg about bad accounting practices and CS was mentioned (pg 62 Beware of Rising Receivables). ".... receivables rose 32 percent... Sales for the same quarter, which ran from March through May, were up only 12 percent. In retrospect, that was classic warning signal. It was spotted by Herb Greenberg, a journalist at the San Fransisco Chronicle, and by Al Tobia, an analyst at Mongomery Securities, but very few other people. Smash! Cabletron stock fell from $44 on May 30 (before the bad news was announced) to less than $14 by December. At the beginning of June, it had dropped to $11." My point is that we really need to examine the balance sheet in depth and not look at earnings per share before extradordinary items. CS is falling behind on the product life cycle and I think they are trying to overcome this by acquisitions. -Gautam