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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.32-0.1%Jan 30 9:30 AM EST

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To: Peppe who wrote (45847)1/3/2001 11:53:39 AM
From: larry  Read Replies (1) of 77400
 
Sadly, the fundamentals on CSCO has changed, dramatically.

There has been detailed explanation as to how CSCO pumps up its cash flow and bottomline growth by employee stock options, investment growth, blah, blah. CSCO will have a very hard time reporting larger and larger investment gains in quarter report when the snowball gets bigger and bigger. Secondly, CSCO will have to raise employee salaries (LU just raised its employee salary by 10% recently while planning to cut work force by 10%) when the stock option is worth nothing more than toilet paper. Will that supress great CSCO's bottom line growth? I think so.

I don't think it's necessary for me to detail how bad the IT spending is for corporates. Think mighty CSCO will be immune to this scenario? You bet.

larry!
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