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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 72.10

+1.4%

Nov 10 3:59 PM EST

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To: Tom D who wrote (40886)	10/15/2000 11:30:33 PM
From: RetiredNow	Read Replies (2) of 77397

I understand that long term, losing market share is a bad thing. But let me throw this hypothetical at you. Let's say the market totals $100 and Cisco owns 80% of it and Juniper 20%. That means that Cisco just got $80 this year and Juniper $20, right? Let's say that the market grows 30% to $130 the following year, and Cisco lost market share and only got 75% of the total, with Juniper snagging the rest. That means that Cisco just got $97.5 and Juniper $32.5. That represents a revenue growth of 21.75% for Cisco and 62.5% for Juniper. So the bottom line is that Cisco is still making a shitload of money. Not only do they have time to catch up, but this is one product category out of an entire line of end to end solutions. Now I'm not saying Cisco losing market share is a good thing, but it's also not time to consider selling the stock just yet either. They are executing in almost every direction and occasionally they play catch up. They will do just fine over the next 5 years, despite what all the crazies think. Wait until the fundamentals change before you sell is my advice. So as you can see the bottom line

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