ZO, it is amazing what comes out of the boob ( cnbc )sometimes.
Few min ago Kathleen Tanzi commenting on pre hour Instinet trading
was mentioning " how some companies might be affected by
CRISCO's eps after the bell today." And that
" one of these is Newbridge Networks , which is now bid at 42, down 1/4 ".
Amazing.
Not a word about today's ALA/JNPR news or the NN/Telia news.
What do CISCO's eps have to do with NN?
Last time J. Campbell was on the SQWAK box at cnbc
banding around last month their new biz ties with SBC ( I believe )
the reporter correctly pointed out to him that CRISCO
<I. only had, less than 2% of the business in the carrier space.
There was a very prominent silence on that by J.C. but of
course
he smiled broadly as he always does in front of the cameras.
Buffett had something to say about CRISCO in the last issue ( May 8 ) of Barron's:
interactive.wsj.com
" The Nasdaq continues to be the major focus in the
market, with bulls pointing to tech companies' solid rate-
resilient fundamentals and bears like Warren Buffett
talking about still-extreme valuations. At Berkshire
Hathaway's annual meeting, Buffett compared speculative
tech stocks to a "chain letter." His view: Companies with
$20 billion market values and no earnings haven't created
any wealth, but simply have become vehicles for a wealth
transfer to the original investors from foolish new
investors.
Buffett also got in an apparent dig at Cisco Systems,
subject of this week's cover story, by suggesting that if
the appropriate investment return is 10%, a company with a
$500 billion market value ought to generate $50 billion in
net income. Buffett noted that no company has come close
to earning $50 billion. General Electric, which generates
the most earnings in Corporate America, is expected to have
net income of $12 billion this year. Cisco should earn $4
billion this year. Its shares, which fell 1 5/8 to 67 3/4
last week, trade for around 117 times projected calendar
2000 profits. "
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