OT, I share your belief that Smart Investor missed by a mile when he characterized aol as a momentum play. But I beg to differ with you on your comments about Cisco.
Long term and accelerated profits are in software, not hardware. I'm a 4 baggier on csco since 4/25/97. I sold my remaining csco last week and put it into AOL because I think it will out pace any such hardware maker in profits, like it's standing still.
As a long term csco stockholder, you should know that they are primarily a software company. IOS is the fuel that drives their margins and market share - it's an exact equivalent to Microsoft's OS for PCs, and just as dominant.
Just as aol, Cisco in the midst of the growth tornado of the internet market, which is still in its infancy. Cisco is a Gorilla, and has reasonably low volatility and little downside due to the characteristics that ascension to Gorillahood bestows. AOL is King of the isp/content provider sector and will continue to post explosive growth, but they will never be able to approach the margins of the Gorilla Clan (csco, msft, intc).
imho,
Frank |
