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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 78.39

+1.3%

Nov 19 3:59 PM EST

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To: Yaacov who wrote (12824)	3/7/1998 10:54:00 AM
From: The Phoenix	Read Replies (2) of 77400

Well my friend, I think I stated why I think CPQ is a buy... It's even a better buy now ;0 right? Well, to be honest, maybe not.... Clearly CPQ is in a competitive market with very tight margins, but I think they are a bit more broadly positioned than say a DELL. Indeed they are seeing some weakness right now, but I think they'll correct this in a major way by 2H 98. They have a fabulous service/support organization now (DEC acquistion) which will produce nice margins. PE's are low, however are they a buy now? Well, perhaps we need to wait until this one settles a bit. They broke through the 50day and 200 MA last week....we'll probably want to wait a bit and see where support builds. My guess is that if you pick up CPQ in the low 20's that you will see a very nice 12 month gain. I think all else being equal that CPQ is easily 35 this time next year. Note that HP looks very attractive as well. As for CSCO. What makes you think that CSCO will not disappoint the way INTC and CPQ did and that is your target price for CSCO for the end of 1998? I'm not sure what you're implying, but the two are not correlated in any way....are they? Cisco has yet to disappoint and the two are in completely different businesses. Sure, Cisco could disappoint but I'm confident they'll make they're numbers through the fiscal year. There is no visible slowdown in infrastructue build out...in fact quite to the contrary. Finally I should point out that INTC and CPQ are/will be very good buys once the dust settles. If your a trader perhaps you stay away, but if you're an investor INTC and CPQ look VERY attractive. I'm using this opportunity to expand my INTC holdings and to re-enter CPQ and HP. Yaacov, if you have other opportunities you would like to share please post them. We could certainly benefit from any ideas you might have as well. Gary

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