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

To: George A. Roberts who wrote (5934)	4/21/1999 2:14:00 PM
From: Trey McAtee	Read Replies (1) \| Respond to of 8358

george---a few thoughts---- on qwst: its not a good investment. i dont care what the fools are paying for it today. service provision is going to become cut rate, and there are going to be few if any real winners. sure it will be profitable, but not like it is now. the good part is that consumers can say goodbye to long distance service. the bad thing is that investors can say good bye to high telecom provider stock prices. CS is a good investment. its below 1x's sales, which in this industry (when companies are taken out at high multiples to sales ) is a real bargain. now, the management problems, etc., are part of the reason. however, companies in this situation tend to get taken out. thats just the way it goes. who will buy? i have no idea. but someone will. someone always wants to add more than a billion to their revenue number. pair on the other hand... most of their profits, which made them more attractive vs. the rest of the xDSL sector, are from older HDSL and SDSL equipment. both there market will likely grow. however, they are under significant pricing pressure from new entrants. so profits decline. as for their ADSL systems... its kind of a running joke. technically they are pretty good (most of the people i ahve talked to think falcon is one hell of a device), but no one wants them. all the telcos want ALA. i dont like DSL for one simple reason...unless you are ALA, LU or nortel you probably wont make much money on it. simply, the money is in providing the CO or DLC gear, not the CPE equipment. even CSCO cant really compete in this market...sure, they will sell routers, etc., but they cant provide a DSL solution that the telcos want. pair, unfortunately, falls into the CPE catagory. if you have any doubts, look at hays. the CPE business is low margin and better done offshore. dont feel too bad...i had to trade WSTL to finally turn profitable on that. and as of this last bounce up i am pretty much out. we all make mistakes. stick with the CS, sell your pair on the next bounce. the morons may take it up to 20/share... but trust me it wont stay there very long. good luck to all, trey