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

To: Ali Shahbaz who wrote (4648)	7/31/1998 8:03:00 PM
From: J Bertrand	Read Replies (2) \| Respond to of 8358

Ali, I am holding Cabletron because I am a patient investor. I think this company has a lot of value. But, here's my list of reasons for holding. See if they match yours. 1. Balance sheet. If over $450 million in the bank and no debt, this gives Cabletron time to come back. 2. Benson owns 24 million shares of stock. He is the biggest shareholder. He is perfectly aligned with shareholder's interest because if he doesn't help the shareholder, he doesn't help himself. 3. Growth industry. We are in the information age. Data, voice, picture are converging. Cabletron makes excellent products that address many of these issues. 4. I would say a better than 50/50 chance that Cabletron gets bought out. 5. Low stock price means less downside risk during bear markets. This stock has already had a major bear market. Doesn't mean it can't go lower, but I bet you can come up with a list of very high pe stocks that could be cut in half with the slightest of problems. 6. I like the new SSR promotion. Sometimes it takes a little "lost liter" to get things going. Selling this product at a $15,000 price reduction is interesting me. You never know. AOL made huge progress by giving software away when others were selling it at $35. 7. Cabletron isn't a small company. It has a good name. And, has been a consistent performer for years. I like buying this kind of beaten down stock. There is no doubt that this stock is going to continue to test our patience. It may be more than a year before we see progress, but we must be patient. The biggest killer of most portfolios is jumping from stock to stock. I am guilty of it myself. Take care. And try not to worry this weekend. Jeff Bertrand