Gary,
Here is the post...Brian
streetadvisor.com
#23891, stephen karasick, Mar 25 1999 6:39AM
Cisco's Just Fine
(NASDAQ: CSCO)
March 25, 1998
by Kevin Prigel
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Cisco has spoken and the word is all is good in the Valley (and around the world as far as Cisco is concerned). With profit concerns overwhelming the street the recently Cisco's news comes with much relief.
If you missed the news don't worry, no one in the popular press covered it (until now). It's another one of those little scoops that institutions get to hear that you don't.
Cisco has a strict policy when it comes to earnings: offer your guidance once, spend everything extra, and beat the street by a penny or two. Nothing more, nothing less. You could therefore understand why Cisco's management was a little peeved when rumors started circulating that revenues were falling about 5% of guidance (another one of those rumors Wall Street circulates). Cisco knew that they were going to miss, yet their stock price (and currency for acquisitions and attracting talent) was reflecting a miss. But Cisco does not comment on a quarter's progress, well usually.
This week a Wall Street tech team showed up at Cisco to discuss the quarter with them. It was during these meetings that Cisco took the unusual step of telling the analysts to go back and tell their clients that ‘everything is just fine hear, thank you very much.' Cisco's comments reinforced the fact the Cisco will not only beat the EPS estimate ($0.37) by the usual penny or two, but they'll do it with the revenue growth that Wall Street is forecasting (unlike Dell).
So throw the profit worries away! Bulls gather round, it's time to rally this stock again.
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