Senthil Sankarappan,
I know that CSCO deserves a premium because of its dominant position in the industry, but I think its current valuation forecasts it being the only player left in the industry, with the ability to charge whatever it likes. I would hate to see what happens when this priced for perfection stock shows signs of being susceptible to competition.
CSCO doesn't have the same kind of monopoly that INTC or MSFT does. It hasn't managed to capture the mkt with a proprietary standard and therefore is a lot more vulnerable than INTC or MSFT. Look at the competition - COMS, BAY, LU, NT, Ericsson, Alcatel, ASND.........Who does Intel have to compete agaisnt - AMD, Cyrix, NSM. CSCO's competitors are in a completely different class than these guys.
Anyway, just think the mkt is getting carried away with this one. |
