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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 71.08

+0.1%

Nov 7 9:30 AM EST

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To: Bindusagar Reddy who wrote (21075)	1/23/1999 3:47:00 PM
From: Chuzzlewit	Read Replies (1) of 77397

Bindusagar, before you make foolish observations like this you might want to check the respective companies' 10-Ks and 10-Qs, especially cash flows. If you do this analysis you might be surprised. Look at cash flow (EBITDA is a good surrogate but add back those one-time charges), and look at profit margins. These numbers are not the hallmark of commodity products for either company. My back of the envelope scratchings show that CSCO has the edge in cash flow, but that neglects future growth. I suspect that growth will look good for both, which is why I am invested in both. To take the attitude of us vs. them is downright silly, and adds little to a meaningful discussion. Remember that the slam against Dell has always been that it is just a commodity manufacturer, but who cares? If these companies can turn in that kind of growth with those kinds of commodity margins and free cash flow I would be thrilled! Even 'technomorons' like me know that there is a convergence of technologies currently taking place. And even I know that data networks and telephony represent a tremendously growing fields that are becoming increasingly intertwined. That's where I have placed my bets. But since I don't have all the answers I have invested in three thoroughbreds (ASND/LU, CSCO and TLAB), each with distinctly different emphases. But I expect that convergence will begin to obscure a lot of those differences, and perhaps winners will emerge. But my guess is that the business is so big that all three will be winners. TTFN, CTC

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