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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 73.87

-0.1%

Jan 9 9:30 AM EST

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To: Dave who wrote (56672)	1/15/2002 11:09:39 AM
From: RetiredNow	Read Replies (1) of 77400

I agree, but those premiums should be perfectly accounted for in discounted cash flows valuation models. If they are growing fast, then their cash flows will account for that. But it seems that these companies almost always are valued in the market higher than their cash flows justify, which means that their is always a departure from fundamentals, which leads to the greater fool theory. Not that I mind. I just adjust my expectations on premium companies to account for this phenomenon. But it irks many people nonetheless because it makes valuation less scientific. :)

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