Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (18399)	6/24/1999 9:20:00 AM
From: drsvelte	Read Replies (1) \| Respond to of 99985

OT-sort of "BTW have you seen advertising from BA, or DD or others? No their management is honest and hard working interested to promote the business of their companies not the stock..." Certainly you jest when you suggest that the management of BA is somehow better than LU or CSCO! Perhaps they are hard working, and I suspect they are honest to boot, but they are grossly ineffective. Losing share to airbus, incredibly inefficient manufacturing, the list is quite long. Management's charge is to increase shareholder value, and if I was a shareholder, my perception would but much less sanguine than yours!

To: Haim R. Branisteanu who wrote (18399)	6/24/1999 10:42:00 AM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 99985

Haim, *****OT****** This supports the first part of your argument, that CSCO and LU may be concerned with the stock price. However, it does not support your contention that they are ignoring the company business. I stand by my statement. JXM

To: Haim R. Branisteanu who wrote (18399)	6/24/1999 1:01:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 99985

Haim, You ignore the basis for CISCO's and LU's advertising and promotion...which is to stimulate demand for their products...next generation products. Without creating awareness the uptake for next generation products would be much slower which of course would translate into slower revenue growth. Are you suggesting that CSCO, LU and other companies not advertise and court that analyst community and simply wait for demand? These companies are creating demand through their campaigns...driving the carriers and enterprise customers to deploy. NT, Siemens, ALA, ERICY aren't doing it because they haven't got next generation architectures to sell...thus they'd love to see the market stall. I should point out that LU is simply playing catch up. CSCO is taking next generation products to market and getting visibility for them. LU is smart enough to know that being an ALA, ERICY, NT...is the wrong move at this point. To be quiet while CSCO stirs demand for "new world" products would be damaging to their revenue stream. Now, does this all eventually role up to stock valuations...well, last I checked revenue growth and earnings growth are a significant part of valuations..and this is what these securities are valued on. If you think for a second that stock prices are a function of advertising, well, I'd argue the opposite as advertising is expensive. Rather look to earnings and revenue consistency for the companies you have mentioned....then tell me there is no correlations between that and stock valuations. OG