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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Earlie who wrote (42496)10/2/2005 11:45:43 PM
From: Lizzie TudorRead Replies (4) of 306849
 
my point precisely, yet they continue to carry growth multiples.

Yeah, ok but you are going to be waiting forever to get a 20% decline on intel or cisco. Here's whats I think is going to happen (and has been happening, these past few years). Cisco and Intel will turn into mature companies in terms of their management structure, financiing less growth, and their earnings will improve dramatically- this has already happened. There are fewer upstarts out there trying to take on Cisco, and Cisco is a bit of a cash cow at this point. Now, we wait, maybe for 10 years, while the stock goes nowhere and earnings improve. In 10 years, cisco's multiple will be inline with every other mature company.
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