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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 665.67-0.9%Nov 17 4:00 PM EST
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To: Haim R. Branisteanu who wrote (18399)6/24/1999 1:01:00 PM
From: The Phoenix  Read Replies (1) of 99985
 
Haim,

You ignore the basis for CISCO's and LU's advertising and promotion...which is to stimulate demand for their products...next generation products. Without creating awareness the uptake for next generation products would be much slower which of course would translate into slower revenue growth.

Are you suggesting that CSCO, LU and other companies not advertise and court that analyst community and simply wait for demand? These companies are creating demand through their campaigns...driving the carriers and enterprise customers to deploy.

NT, Siemens, ALA, ERICY aren't doing it because they haven't got next generation architectures to sell...thus they'd love to see the market stall.

I should point out that LU is simply playing catch up. CSCO is taking next generation products to market and getting visibility for them. LU is smart enough to know that being an ALA, ERICY, NT...is the wrong move at this point. To be quiet while CSCO stirs demand for "new world" products would be damaging to their revenue stream.

Now, does this all eventually role up to stock valuations...well, last I checked revenue growth and earnings growth are a significant part of valuations..and this is what these securities are valued on.

If you think for a second that stock prices are a function of advertising, well, I'd argue the opposite as advertising is expensive. Rather look to earnings and revenue consistency for the companies you have mentioned....then tell me there is no correlations between that and stock valuations.

OG
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