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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.56-0.6%2:32 PM EST

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To: Ryan Hess who wrote (39249)8/10/2000 7:04:31 AM
From: Road Walker   of 77400
 
rhess, Dipy,

re: PE expansion "Because the stock price has grown faster than earnings."

That the result. PE's expand (or contract) because of the expectation for future earnings. In Cisco's case the expectation is that the earning growth percent will accelerate.

And you are right, some day it will end, and Cisco's stock will go down for a long period of time. Based on their results and the CC, I don't think it's now.

John
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