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

To: Doug who wrote (5808)	3/24/1999 3:16:00 PM
From: BMcV	Read Replies (2) \| Respond to of 8358

Hi Doug, >>My patience is now at an ebb.<< CS sure has a way of doing that, doesn't it? As far as targets go, I had much more faith when we were at 15 that we'd reach 25 than I do now that we'll reach 15. But ignoring my cynicism about the company, the bull case would be a turnaround in the core business raising the stock price to the high teens, then a buyout in the low 20's. Those numbers are respectively twice and three times revenues per share. Seems hard to believe now, but we were well on that road just this fall, before the first earnings blowup (before this one). The stock was trading at 15, looked great technically, seemed to be winning back friends on Wall Street, then they threw it all away. I owned both Unisys and Novell for years. The recovery in each dragged on forever, with restructurings, new business plans, acquisitions, and everything else imaginable. The stock prices went sideways for 4 or 5 years. Then, when the perception hit the street that things had really changed, both stocks shot up, doubling or tripling in a matter of months. I held on to UIS through the whole cycle and did quite well; but I sold NOVL at a loss after three years out of frustration. But that is the way bottoms do their work, boring you to death and frustrating you to tears. Hopefully, with the intense pace in the networking industry and all the consolidation taking place, things will move faster with CS. We're already 18 months into the downturn. good luck and sometimes it's best just not to look, Bruce