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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.19-0.1%Jan 16 9:30 AM EST

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To: Bill who wrote (33219)3/31/2000 11:47:00 PM
From: Kashish King  Read Replies (1) of 77400
 
e-Bill,

You said It is unfortunate for some that they miss opportunity by pegging their view of "valuation" to PE. So then you should have no trouble paying $320 right now for CSCO at a market cap of 2000 billion, that's 2000 billion. Forget the PE, assume they earn a fraction of one cent per share and PE rating of 40,000,000 or so. It's not the PE it's the price relative to the revenues that has me concerned. Good companies of this size can get from 2 to 3 times annual revenues, CSCO is trading at over 30 times annual revenues. No batter how good things are it will never justify this price.
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