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 73.32

-2.5%

3:48 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Eric who wrote (55928)	10/15/2001 12:56:29 PM
From: larry	Read Replies (2) of 77400

Eric, Thanks for your message. As other people on this board pointed out, CSCO's P/E was consistently in the teens to about 30 before 1997. It really went over the roof during the bubble days. And you really cannot expect CSCO to regain bubble margin and bubble earning any time soon, if not never. I pointed out this issue two years ago that CSCO's earning number is skewed toward more and more relying on interest or investment gains to pop-up growth, which is not sustainable. Now CSCO is basically going to break even next year (exluding interest gains) and make less than 20 cents in 03. Enlighten me as to how to extrapolate CSCO's rich premium under these scenarios. Bulls seem to argue that it's impossible to use trough earnings to value a company. Fine. But the trough earning period was supposed to be in 01, now likely in 02, and down the road, even extending to 03. Should we use CSCO's 04 or 05 earning estimate to value this great company? But even the great Chambers has no clue as to what CSCO is gonna make in 04. larry!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next