Sorry for the delayed response but I have been very busy. CSCO's earning's statement clearly shows a slow down in "Core business" growth. One time write offs and "other income" has been the means to arrive at their one penny above expectations for the last few quarters. This has been written about at length on numerous threads on SI as well as some major financial rags. One of those articles ( the NY Times I think) was the reason for the sharp decline last fall or this spring, I forget which. I don't have the time to scrub their 10Q again but there have been so many articles written about it over the last 6 - 9 months, you should have no problem finding any. CSCO has been pulling this stunt for a long time but no one seemed to care. Now that the market is forcing people to pay more attention to things like this after LU got away with it for a long time then bit everyone, and CPQ did the same, and now DELL, and to this day GE, CSCO etc, they suddenly are opening thier eyes, but still not wide enough.
There are plenty of people that won't see or don't want to see the truth. I was reading the NTAP thread last night and they couldn't figure out why the stock dipped. Gee 120% growth, a 450 PE ratio, that is a PEG of 3. What a value!!!
Don't worry, I think they'll both go up anyway, there are too many people that don't even know what a 10Q is much less where to get it or how to read it. The stock market depends on those people. Heck, so do the elections!
Good Luck,
Lee |
