Puff,
Interesting post. So, the market turns bad.... folks run for the doors and put their money in...where...the mattress? Where's the big money going to go...more importantly and more significantly where's the small money going to go - the mutual funds and 401K?
My guess is they go for stability - flight to quality and Cisco, since they always make earnings, will benefit. That's why they're holding up in this market ... as well as anyone can hope anyway.
Cisco is valued higher than AT&T and most others because there's a huge amount of growth in this sector. The internet has just begun...network buildout hasn't even started...here in the U.S. let alone overseas. The entire telephony infrastructure is on the verge of being ripped out and replace with data centric equipment...the growth expectations are not only huge but they are real. What's more there is a signficant barrier to entry - unlike the internet companies such as AMZN, AOL, YHOO, XCIT and others. Anyone can start a web business but not just anyone can build the equipment that will make the internet grow.
Puff my man...how are you accessing this page??? Modem?? 56K??? How would you like 1.5M or even 8M? for the same price as you pay for the 56K line? How about the ability to watch a video anytime you want...fast forward it, reverse, pause. How about taking your family videos and uploading them to a web host so your family back east (or west)can veiw them? What about have ads tailored for you? Or perhaps the ability to gain access to an investors seminar - all from your TV or computer??? This will come and these feature (and many more that I haven't got time to list) will be coming your way. These capabilities will fuel the network build-out here in the U.S. and then overseas.... As the Carpenters said. "We've only just begun"
True market fluctuations will effect every stock, but CSCO, LU, ASND, and other strong networkers are a great place for long term money. You can take that to the bank.
Gary |
