Cisco Systems, Inc. (CSCO) Message Board

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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 77.81

-0.3%

3:59 PM EST

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To: ehasfjord who wrote (61484)	9/30/2002 9:15:39 AM
From: Stock Farmer	Read Replies (1) of 77400

yea, they own a bunch of cisco. And they cleverly collared it too. So the decline hasn't hurt them at all, nor will a recovery. So in effect they do own about $8/share. The question however remains: would you pay par for a $5 bill with puke all over it? If similarly dirty bills are available down the street for $4 each, even hardened souls might pass. When one can purchase assets below asset value (Worldcom comes to mind), why would anyone want to buy equities above asset value? Even growth stocks are effected, particularly if they depend on growth of the distressed businesses (such as Worldcom). One can take certain now-profit by buying stuff in distress versus unsure future-profit? Hey, that's the old bird in the hand versus two in the bush thing. Personally I fully expect to be able to accumulate assets at a fraction of their real worth, as companies enter the last phase and desperately struggle just to stay afloat. And a few won't make it... the risk of being prematurely greedy. And so I wait. Am I alone in this thought process? Probably not. It is a timeless pattern. Picture the same thing in Yellowstone... a pair of wolves resting, fully alert, just out of reach of a grizzly and his kill. Staring through the binoculars I have a sudden empathy for those patient, panting wolves: sooner or later he will leave it and then they will feast on the scraps. The question now is the degree to which this heartless empathy between hunters is shared in today's market. If such sentiment reaches critical mass it can even become a cruelly self fulfilling prophesy. I fear we are already beyond the event horizon and are about to get a rare glimpse of the other side. Deflation is such an evil condition. John

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