Cisco Systems, Inc. (CSCO) Message Board

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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 75.26

+1.2%

Jan 15 3:59 PM EST

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To: Jean M. Gauthier who wrote (39549)	8/16/2000 6:41:39 AM
From: JDN	Read Replies (1) of 77400

Dear Jean: OK, lets get SERIOUS!! Here is the situation as I see it with CSCO. The stock has currently reached a plateau. (thats a high flat space) 1. Its at an extremely high PE and needs to have its earnings grow into the PE ratio a little. No big deal, we sit here and rest awhile as they continue on with their growth in excess of 50% a year bringing the PE ratio on operating earnings down probably to 85 or so by the end of the year. 2. Lets face it, Optical Networking is the future. While CSCO has a presence in it now they have not clearly articulated to the street JUST how they intend to become a dominate player (#1 or #2) in this market. Now, do you blame them? No way do I want the to tell the competition how they are going to accomplish this feat. BUT, I have NO DOUBT they will!! So, the bottom line is this: Once the above two steps are accomplished CSCO stock price will again shoot up as before. However, in the interim I personally do not expect more than a 20-30% annual gain in the stock price. JDN

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