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 84.78

+2.9%

Feb 6 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: RetiredNow who wrote (55783)	10/4/2001 12:30:48 PM
From: Stock Farmer	Read Replies (3) of 77400

Hi Mindmeld, you are possibly incorrect. One day I will own shares of this company. But not today. I suspect this is the beginning of the short term pop we both have been anticipating. The market can only hold it's breath going underwater for so long. Then must pop back up and broach. I personally don't see $0.02 [pro-forma] and "stable" sales (read, not going up at 50% p/a) as a good reason to pay $15 per share. Not from the position of fundamental economics. There was a time when Cisco was well priced. Such a time will come again. At which point I will go long, because the company is here to stay. Just not today. Right now the action is all speculation. Imagine for example if IBM was to slash it's dividend from $0.56/year to $0.00 per year. And then if it were to announce earnings would plummet from $4.60/share to $0.53 per share. And that the good news is that sales were flat. And imagine further that I was here posting "IBM is a great buy at $100.00" (up a little more than a buck from current prices). You would know I was singing loonie tunes. But $100.00 on $0.53 in earnings is kinda the same as $15.00 on $0.08 - and I'll throw in pro-forma for free. The stock option stuff is just a side-show. Like the "no debts" (oops, forgot about 8 Billion Current Liabilities) is just a side show. Like the pile of cash that isn't growing and isn't cash is also a side show. So no, I think that either Gravity has some more work to do, or business had better really pick up (or a combination of the two) before it would be a low risk buy. However, you are quite correct: it's a speculative play right now. I think we'll see a speculative pop into the twenties and even the thirties isn't out of the question. The key word is "speculative". Which doesn't match my current risk/reward bias for long positions. Some day when the market has confirmed a bull run, I'll be back long. Six months isn't a long time in my books. John. [EDIT: Am I ever glad I'm not short too :) ]

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next