Cascade Communications (CSCC) Message Board

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Technology Stocks : Cascade Communications (CSCC)

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To: Thomas Kiser who wrote (2397)	2/23/1997 2:18:00 PM
From: Amir Shalit	of 3743

Tom, "Do you know which of some of these stocks mentioned have superior margins and which ones the worst?" This is easy. All you have to do is the following to calculate product margins: (total sales - cost of sales)/ total sales Net margins is simply: Net Profit/ Total sales Both CSCC and Cisco's Net margins are about 20% and their product margins are above 60%. That's very good. The only fear is that high margins may not be sustainable. SHVA's net margins were about 10% and 3-COM is about 12%. I think Shiva is just spending too much but 3-COM is playing in a very competetive market. The main reason I'd like to diversify here is because it's not easy to predict the long term winners. It's not like picking Nike or McDonnalds (I own both). Maybe the only exception is Cisco, which is almost a blue chip tech company by now. Amir

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