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Technology Stocks : AUTOHOME, Inc
ATHM 23.54+0.1%Dec 26 9:30 AM EST
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To: ahhaha who wrote (9330)5/12/1999 2:31:00 AM
From: Uncle Frank  Read Replies (2) of 29970
 
>>CSCO is a maker of hardware and it is notoriously difficult to retain an ever growing earnings stream under ever growing scale.

PMFJI, ahhaha, but I think you're making an error characterizing Cisco as a hardware company. They are primarily a software company, and their proprietary IOS (internetwork operating system) is arguably as strong in the networking space as Windows is in the computer desktop's. Cisco integrates their hardware into the ios scheme, and then offer seamless solutions to their customers. This is why they are able to consistently post gross margins in the 65% range and be relatively immune to pricing pressures from their hardware-only competitors. They also have a strong revenue steam from ios ipr.

I appreciate the thoughtful posts on this thread, and look forward to using them as part of my dd on athm. Quite an intellectual group - this is the first time I've seen ceteris paribus used in an SI post.

So what does it mean?

Frank
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