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

To: Gary Delong who wrote (6052)	5/7/1999 3:06:00 PM
From: Trey McAtee	Respond to of 8358

gary-- by spinning it out, they create a lot of LT value. yes, the do get the initial cash boost. but they could still draw revenues back in the form of dividends if necessary. if the spin off gets a decent mulitple, it would significantly strengthen the balance sheet. it would also give the new company a great stock with which to attract employees through options. good luck to all, trey

To: Gary Delong who wrote (6052)	5/7/1999 3:19:00 PM
From: polarisnh	Respond to of 8358

Gary, I am not saying sell it and walk away. When I say spin off Spectrum the way that they should, I am referring to Cabletron maintaining a minority equity stake and a few board members and new independent management. I am not suggesting that Cabletron completely abandon Spectrum but to get out its way so that can aggressively pursue the competition. Think about it.... What does a shareholder gain by Cabletron doing their 'smoke and mirror' spin off? Nothing! Because the same management that is getting it's clock cleaned by the competition will still be running Spectrum. I don't see how this is 'unlocking' shareholder value. Nothing will have changed.