Cisco Systems, Inc. (CSCO) Message Board

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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 75.19

-0.1%

Jan 16 9:30 AM EST

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To: uu who wrote (48324)	2/7/2001 9:56:20 AM
From: SouthFloridaGuy	Read Replies (1) of 77400

<<To think that companies such as Cisco or JDSU are going to lose their market cap big time is an investment suicide IMHO. Sure these stocks will always remain expensive and anyone can argue about their overvaluations. But that is how everything is in life! Quality is defined in terms of how much you are willing to spend.>> How do you know this? How can you make such a claim when there is a fundamental shift going on in the customers of Cisco? In addition, how can you say that ANY company should deserve a premium if it cannot grow its earnings, which indeed CSCO has just said? For much of the history of the stock market (prior 1981), stocks actually traded at DISCOUNT multiples in bear markets. The extent of CSCO's overvaluation is purely a liquidity based phenomena caused primarily by a Fed that won't close the spiggot on Money Supply. Easy Money ---> Bubble ----> CSCO goes up ----> Bubble bursts -----> normal valuation for CSCO = 20 (at current earnings) -----> Bear market ------> CSCO = 12 (discounted PE). I am sorry you're losing money on CSCO, but you should have cut your losses at 15% instead of hoping. In addiiton, you're a complete lunatic for catching a falling knife stock. This isn't 1999 anymore. If it does indeed go up after the news due to contrarian forces, I hope you average out and sell for a breakeven.

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