Excuse me but this puppy's P/E has been high for as long as I have been in the stock and that is over 2 years.
Actually, this "puppy" hit ... what ... 41? about 6 weeks ago. Presumably its P/E at that point was a bit lower. But I realize that's ancient history.
CSCO is a great company, but I think it's fully valued or more at today's price. So I'm out for now; will re-enter if the valuation becomes more attractive. Can it go higher from here, even short-term? Of course. In today's climate, an on-line book vendor that has never shown a profit, and already has a stratospheric valuation, can rise 25% in two days on no news. We're in the manic phase of a manic-depressive cycle right now, just as we were in a depressive phase in early October. Back then, global recession was imminent, the world's financial markets were about to collapse, recession, war, flood, and pestilence loomed. Now, it's nothing but sunshine and profits as far as the eye can see. And what changed? A couple of quarter-point rate cuts? Japan saying that this time it really, honestly, is going to do something about its banking crisis?
Yes, in this climate, CSCO could go to 200. There will be tons of money made by those courageous enough to ride this wave, and lucky or smart enough to get off before it breaks. Me, I'm done for the day; I'll see you on the beach. |
