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

To: john dodson who wrote (5435)	12/6/1998 9:48:00 PM
From: Pruguy	Read Replies (1) \| Respond to of 8358

appropriately, no buying yet....looking to add to my losses in the 8 dollar area....why...Who knows!

To: john dodson who wrote (5435)	12/7/1998 1:00:00 PM
From: starpopper	Read Replies (1) \| Respond to of 8358

<<<"Anyone stepping up to the plate and buying CS at these levels? I'd be real interested in why, and what potential price target. Good luck, -John">>> ******* Sound reasons abound for a buyout of Cabletron north of $18 per share! First and foremost, CS has an under performing management team that with its ouster alone could yield substantially higher margins and ROI for ANY acquiring entity! The numbers are amazing! Second, CS went from 8% to 33% market share in the fastest growing sector of the networking industry...in spite of management! That was accomplished in the face of a major push into the area by Lucent! The SMART line is tops!!! In fact, CS now has a very formidable technical team but they keep getting let down by higher ups! Third, with the acquisition of DEC, major sales channels can be merged more efficiently into CS's already heady worldwide team! Again, with proper management, these guys should be better able to capitalize on CS's vast installed base and gain market share on the competition! Fourth, entry into this field is costly and maintains high barriers...picking up the fourth largest networker instantly makes you a player if new to the game, or consolidates and augments your position if you're already in the game! CS is dirt cheap below $10 and any buyout offer below $14 would guarantee a bidding war! Any acquirer would want to avoid such a spectacle and would want to offer at least $18, but could rationalize upwards of $28 based on fundamentals! I haven't started my new position yet because I'm playing out my existing hand in other areas, but I've got to tell you that I'm nervous that this spike below $9 may be very short lived and I may miss my chance! Some of you guys are very frustrated with this company and rightfully so, but don't compound the problem by not taking advantage of this gift horse staring you in the mouth! Average down some more if you can...your reward is no more than a quarter away!!! $weet Dream$ $tarpopper