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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.94+1.1%Nov 28 9:30 AM EST

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To: Catcher who wrote (20153)12/27/1998 1:48:00 PM
From: LindyBill  Read Replies (1) of 77400
 
Interesting paragraph from Motley Fool:
6. Value Freaks

Look, cash sells at 30.8 times earnings (that's a yield of 5% after 35% taxes. That's 1/(0.05*0.65). Quit with the "historical P/E on
the S&P 500" yick-yack. Look, when a company like Cisco Systems (Nasdaq:CSCO - news) makes equipment and software
that facilitates the doubling in Internet traffic every 100 days, equating its fair P/E with its EPS growth rate over the next year is
pretty much braindead. Cisco should sell for the same multiple as a money market fund when traffic over the Internet increases by
a factor of more than 12 every year? I DON'T THINK SO.
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