<<To me it looks like LU, CSCO, TLABS are kicking butt. Go with the winners
or get left behind. No pun intended.>>
Marcie, you named three great companies, for sure.
However, buying CSCO at $90 or upper $80s is close to madness, IMO.
CSCO has already doubled this year.
Their multiple is bloated because of their reputation, but one
misstep and you could see that drop. Their growth has been slowing
and they have yet to prove that they can make the transition from
predominently a router company to the newer switching topology
without being adversely affected. There is not that much
upside potential left ($10-$15?) and plenty of downside, if they
show any weakness.
I'd rather be "left behind" in ASND and MRVC, where the drop has
already mostly, if not fully occurred ($80 to $23 and $39 to $26),
growth rate is higher (MRVC is growing 2.5 times faster than CSCO),
and the prospects of future price appreciation are much greater.
Can ASND go still lower? Sure, but not much and it won't stay down
for long. Could CSCO drop to the $60s or lower on weakness and stay
there for a while? You bet. |
