Cisco Systems, Inc. (CSCO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 71.62

+0.8%

11:08 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Stock Farmer who wrote (51623)	4/17/2001 11:41:22 AM
From: Eric	Read Replies (2) of 77397

John, Well I listened to the majority of yesterdays CC late last night before bed and the final 10 minutes of it this morning. Summary: Cisco took an inventory hit due to the fact that forward booking built up components in some areas late last year and early this year. Some parts had long lead times up to and beyond 26 weeks. Since they were facing severe shortages on parts for some of their expensive boxes this probably cost them 5% of possible sales leading up to November of last year. Since then we all know things have fallen off the cliff in certain areas. DSL has really slowed down, and they have a component build up that due to obsolescence is not going to be used. A lot of these parts are "aplication specific" meaning they can't be used in other products by other companies. Cisco has patents on implementation on some of these products so the components can't be used by another manufacturer. Still though a lot of other parts will be used going forward. It looks like to me that about 80% of them will be used going forward. Some people want to compare Cisco to Dell. Dell's computers use parts that are in just about every competitors computer and thus the majority of them are "comodity parts" That's true to a large degree with Cisco's products but some of the highest value ordered parts are custom made for specific application in Cisco's products and thus the overhang. Going forward I actually liked what Chambers and Carter said. They still stated 30 to 50% growth going forward...for the long haul.... 3 to 5 year forecast and I still see that remaining intact. Some analysts commented that certain markets were actually picking up. The 39 minute question and answer period with analysts really hit some hard questions but to me anyway the company covered them well. Some of the questions will be answered in detail during the May 8th call. I really now think that we have seen the bottom in the stock, I would be very surprised if we went below $13 at this point. We have blood in the streets and that's when bargains happen. It won't last long. All the bad news is out, the big overhang has been addressed. Eric

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next