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

To: Doug who wrote (5491)	12/21/1998 8:25:00 PM
From: WTSherman	Read Replies (2) \| Respond to of 8358

Doug, your point is well taken, but, I don't think that's the whole story or even most of the story with CS. Look at the increases in their selling expenses and the increases in their cost of goods. Since I'm not on the inside at CS, its hard to know whether the cost of goods number is actually a reflection of higher volume sales at lower prices, or not. But, the selling cost increase is clearly more of the same old story from CS. I have seen the way these guys work and they still think that the key to success is schmooze. IT folks will always accept schmoozing(as long as its fun for them) as long as their vendor does NOT represent some sort of risk. For way too long, CS management has believed that the road to success was a overpaid sales force with unbelievably generous expense accounts. It just doesn't work that way anymore and hasn't for quite a while. The three things IT people fear most are unplanned change, inability to deliver adequate system performance and systems that require more support than they expected. CS' current situation threatens all three. This stock has been a loser for a long time. Unless they change things, at the top, very quickly there will be no possible turnaround.