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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.12+1.5%3:06 PM EST

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To: Ed Forrest who wrote (58552)3/19/2002 9:58:24 AM
From: RetiredNow  Read Replies (1) of 77400
 
Hi Jeff and Ed, believe me, I want to agree with you guys. But in my heart of hearts, I know that something John said before is correct. Stock market value may at times diverge from economic value (sometimes higher, sometimes lower), but over the long term stock market value always regresses to the mean that economic value represents. Usually, in times of rapid growth a company's stock market value outpaces its economic value, but then it comes back down. We've already experienced a good bit of that decline in value, but it looks like we have more to experience over the long term. Either that or Cisco's management team will figure out how to increase economic value prior to the stock market value sliding further.
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