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Technology Stocks : Worst stocks for '96

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To: Mephisto who wrote (290)2/5/1996 10:05:00 PM
From: Carl Smith   of 312
 
Mephisto, as a former Cisco owner let me say this ............

They are probably one of the best managed companies in the US.
However you must keep in mind that in order to command a high
PE Cisco must continue to increase earnings (beat estimates). They
have been doing this by buying up the competition. However, there
comes a time when a company aquires so much mass that its
difficult to move. Cisco is about a billion dollar a quarter company with
at 40-70% growth rate. This growth has got to start flattening soon.
Remember that going from $1 to $10 is 1000% growth, going from
$11 to $20 is only 100%.

Cisco will provide you many years of happiness with sustained growth.
However I feel that there are better opportunities out there to really
make money.

Carl
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