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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.03+0.8%Nov 14 9:30 AM EST

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To: Alok Sinha who wrote (25435)5/11/1999 8:20:00 PM
From: 16yearcycle  Read Replies (2) of 77399
 
Ok, here is my twice yearly defense of the pe. The q was .38, right? So they will earn .38, .41, .44, and .48 going forward. This is 1.71, which is a forward pe of 65, not 80-120. Revenues are growing at 40% plus. So csco is getting a slight premium to the growth rate, while positioned as the leading company in their market presently, and their market will not be saturated for many years.

If anyone thinks it is too high here, fine. Wait for the next brutal sell off. The price was 41 at the low in October, which was a pe of about 25 based on this quarters run rate.
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