re: Now's a time for ice cold logic
OK. Here's some simple logic. From today's close, is it more likely that CSCO will go up 15 points, or down 15 points?
Now, if we were talking about a B2C (a retailer pretending to be a tech), or a CLEC (spending a few billion of borrowed money to see if a market exists), or any company with a lot of debt and inadequate cash flow to service it, then maybe the stock could go to zero. But that isn't Cisco's situation. Yes, it has problems. I've listed them, talked a lot about them, and they are real. But all of Cisco's problems are time-limited. Inventory problems, overcapacity, etc., time will fix them. And when the economy and sector turn up, who is going to dominate telco equip? NT? LU? The most likely candidate is Cisco. |
