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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.99+3.1%3:59 PM EST

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To: Brian Malloy who wrote (28317)9/15/1999 11:46:00 PM
From: RetiredNow  Read Replies (1) of 77398
 
Nice article, Brian. This is exactly what I was talking about with Mizzou. Nowadays nobody cares about PEs. The thing to focus on is a cash flows based method of valuation. And by the way, now Cisco has about $10 billion in cash, not $1.9 billion like the article said.

So any model that uses some cash flows based method to value Cisco will prove that Cisco has plenty of stock price growth left ahead of us. There estimate of $300 in 5 years is a bit rich for me. But I am willing to bet that Cisco's stock price will reach at least $210 within 5 years.

So my advice is to look at the net cash inflow per quarter. That is the best sign of growth. Cash doesn't lie. Earnings etc can be played with.
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