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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.95+0.2%Dec 5 3:59 PM EST

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To: bambs who wrote (42765)11/6/2000 11:37:19 PM
From: Dan Spillane  Read Replies (3) of 77400
 
There is a big, big problem here.

The low stock price is a major problem that will be adjusted. Maybe there will be some kind of idiot's selloff, like there was recently with Microsoft...but that is about it.

The big problem is the price of CSCO has gone way down while the earnings and outlook have gone way up! As John Chambers pointed out today, earlier this year the stock was at around 80 dollars--with predictions of only 30-odd percent growth. Now it is trading over 30 percent lower and actual growth is coming in at twice that rate!

The low stock price cannot stay this way--it will be adjusted by the market. Future EPS up, future revs up...

Why would the stock go down over the long term with the improved outlook? Or for that matter the short term?

The fundamentals just don't support this low stock price!
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