Yes SY, I'm mulling the valuation dilemma myself! I, as most investors, in this chat room do not question the quality, leadership, or position in the Tech arena for Cisco. They are hands down #1 in all three fields, in my opinion. My question, or dilemma, lies in the area of stock valuation, and where the current market is taking Cisco, as well as other high P/E stocks? Yes, Cisco has maintained a high P/E for years, and yes they have continued to show tremendous growth running with the P/E, but it appears that this current Bear Market, and it is a Bear Market, seems to be in the process of taking the High P/E stocks down, Cisco among them, and taking them down to a value equal to it's P/E's. What does this all mean to my Cisco investment? Well, if it is indeed going to correct to it's "proper" value, we could be looking at a $35 figure. If true, that is a frightening figure, despite my $20 cost basis! If Cisco does hit $35 range we're talking NASDAQ 2500 range! As a Long term Bull I've painted a Bear picture, as one has to consider all possibilities in this volatile market. I'd like to hear some comments on my possible doom and gloom scenario, and some reasons why "it just ain't gonna' happpen!" Thanks
Howie |
