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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 75.26

+1.2%

3:59 PM EST

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To: lkj who wrote (25683)	5/14/1999 9:17:00 AM
From: jach	Read Replies (2) of 77400

<Cisco's margin has only one direction to go, and that is DOWN.> absolutely, with so many companies coming into play (from startups to big gorillas) how can one still maintain this kind of margin. Guess what will happen when the margin for CSCO drops to the average range of what LU and IBM are getting ?? For LU, it'll be no problem as they're already comfortable with this type of margin. CSCO is getting these margins only because of historical monopoly on Router mkt (and this is not because of one is so good, the only reson was that the big gorillas left CSCO alone in this arcance mkt before as the forest is so small). This factor is dissapearing as we've seen from the many startups getting share from CSCO in GBit and high-speed switch-router segments, as well as LU and NT getting significant data share. Therefore, common sense said, when the margin goes down the stock will very quickly follow in a downward spiral too. All imo.

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