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In recent weeks, investors have been bullish on Cabletron's prospects, and
especially on the stock price. Just last week John Murphy appeared on CNBC
and stated that, technically, the stock appeared to be the strongest of all
networking stocks.
Cabletron's unexpected news, and subsequent fall in price, underscore an
important Foolish philosophy of investing in companies based upon their business,
long-term, rather than technical or short-term analysis.
The following recent posts from both the AOL and Web Fool message boards
tell an interesting tale from the point of view of several different investors.
Recent Cabletron Posts
Subj: CS Breakout
Date: 28 May 1997 14:46:05 EDT
From: Waglet
CS was featured on CNBC today by technical analyst John Murphy as being the
strongest stock in a very strong group. Noted that the breakout above 18
months resistance at $43.50 on heavy volume was extremely bullish and augured
for further significant gains. Amazing how 6 weeks ago everybody (not on
this board, but the market in general) was ready to write the networking
stocks off as finished. Now they love 'em. So much for the efficient market
theory!
=====================
Subj: Undiscovered Country!
Date: 28 May 1997 17:20:26 EDT
From: Samrana
I saw that piece by John Murphy at 1:30 today on CNBC. $46.25! KACHING! KACHING!
...The sound of money! Cabletron is the strongest (from a technical standpoint)
in the networking group. Thank you!
=================
Subj: Re: CS Breakout
Date: 28 May 1997 17:33:18 EDT
From: Mdmbdumont
Thanks everyone. Bought CS at 28 a few weeks ago, sold today at 44, yeah
maybe it was too early but 16 dollars per share is my best return in over
a year for such a short time period. I have a buy in to pick it back up at
28 when it floats back down as it always seems to do. I do think it is a
good, strong company; but, people always seems to forget about it and run
to Cisco and the others after CS has its run-ups. Interesting BIG BLOCKS
by Goldman Sachs the last 2 days. It feels good to make it on one these.
My last game cost $3,000 on SYQT over last year.
=================
Subj: Re: A PROFIT!!!
Date: 02 Jun 1997 17:12:48 EDT
From: CWB54
... I think this gem has a long way to go on the upside.... CS has been so
undervalued for so long that most of its followers forget just how far this
stock has fallen. Fair value is at 25x forward eps, at a minimum. Don't forget,
this company holds the record for eps (earnings per share) growth for all
current S&P 500 companies!! You have to think about that a moment --
there are some pretty impressive companies in that universe, viz., INTC,
MSFT, etc. Levine and Benson are going to continue leading this industry.
The stock will sell at $55-60 by summer's end. Good Luck!
=================
Subj: Re: A PROFIT!!!
Date: 02 Jun 1997 23:37:29 EDT
From: CWB54
Is there any way one can erase an earlier post? I spoke about 30 minutes
too soon. Have been a bull on CS for several years now, but tonight's
announcement just reinforces my belief that it doesn't pay to fall in love
with any of these companies. All of them will let you down eventually. They
are just a means to an end -- unfortunately the end tomorrow isn't going
to be pretty. I'll be a former owner of CS tomorrow, once things settle down
after the bloodbath we'll see on the opening. By the way, what are you buying
with your CS profits?
=================
RELEVANT MESSAGE BOARDS:
3Com
Corp. (COMS) *
Ascend
Comm. (ASND) *
Cabletron
Systems (CS) *
Cascade
Comm. (CSCC) *
Cisco
Systems (CSCO) *
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