Random thoughts from a current and 3 year shareholder:
1.It sounds to me as if the cc helped.
2.If they sustain 40% growth, C$CO would be at 2.00 e pace in 1 year. Even with a pe of 60, it doesn't leave much room for immediate price expansion, unlike the give away low 40's price we got in October. God, people, next time sell the farm and buy!
3.They did not seem to get a big y2k boost like msft. This makes me suspicious that msft's blow out was not so y2k related after all. There is not enough evidence of it at other companies, although we will see what tricks Dell has in 2 weeks. It does seem that msft is a big bargain compared to csco, with as fast a growth rate, better margins, but lower pe.(msft is e a rate of 3.00, which is a pe of 57, while csco is at about 70)
4. csco is likely to be at an e pace of 2.80 per share in 24 months, leading to a price potentially in excess of 170, so it is certainly worth holding even at these levels. |
