Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: The BayWatcher who wrote (5469)	12/13/1998 11:34:00 AM
From: WTSherman	Read Replies (2) \| Respond to of 8358

<Their growing share of the switching market makes this a compelling takeover, probably by CPQ. > Ever since the DEC buyout CPQ seems to be replacing IBM as everyone's favorite white knight. But, I don't see the logic... CPQ bought DEC for its service network and customer base, not for any technology or mfg. expertise that DEC had. If CPQ wants to play in the datacom game there are plenty of candidates with superior technology out there. The last thing they need is another broken down New England tech co. I wouldn't be buying this stock on the chance that they'll be bought out at any substantial premium. As somebody said earlier, this kind of downward spiral in a tech company usually doesn't get reversed, it just gets worse. Everyone in the industry understands that and a significant premium is unlikely. The reason for this is pretty simple. For matured tech co's a very large portion of their revenue comes from existing customers. They have logical incentives to buy from an existing vendor. But, this relationship can only take so many hits and CS has had too many to sustain the bulk of their customer base. Its eroding now and will continue to do so. There are so many better places to put one's money...