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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Nehrboss who wrote (28001)	8/29/1999 12:01:00 PM
From: Tony Viola	Respond to of 77397

Richard, RE: PE range It's ranged from 20is to 130is.. problem is, that it's spent from 91 to early 98 in the under 50 PE range. I'm a bit concerned about that... Richard (Cisco) It's the Internet craze. Repeating myself: beta.siliconinvestor.com The way I look at is, am I going to not own this stock? No, I don't think I'm going to not own it. You? If you don't like comparing Cisco with Internet stocks, take a look at Qualcomm, Broadcom, PMC Sierra for PE comparisons. I know they are smaller than Cisco and may be given more "leeway" with PE. But still, they are 3X or so Cisco's PE. A stock is worth what the market will pay. JMHO of course. Tony

To: Richard Nehrboss who wrote (28001)	8/29/1999 2:18:00 PM
From: hasan syed	Respond to of 77397

RE: PEs, the main thing to note from 91 to 98, CSCO actually had competition in the form of 3com, Wellfleet/Synoptics (Bay networks), Cabletron, Newbridge, Ascend, etc. Now, as we have seen, competition has either been merged/acquired into larger entities or simply can't compete. At this stage, it would be like comparing INTC to AMD or MSFT to NOVL or Linux companies like RHAT...the comparison is a bit ludicrous. Premier companies like INTC, MSFT, CSCO, etc that dominate their market sector or subsector will always have premier valuations. Best of luck. Regards, Hasan

To: Richard Nehrboss who wrote (28001)	8/29/1999 3:22:00 PM
From: RetiredNow	Respond to of 77397

yes. Exactly. This is what has me concerned also. I know alot of newbie so called expert investors are saying that we have reached the dawn of a new age where we need to re-evaluate our methods of pricing the valuation of a company and its stock (read justify the current insanity). I know fundamental analysis is simply not popular right now and that most of us would rather believe that these valuations are justified, but they are not. Also, PW, I bought my shares when I thought they were rich also, but that was a around a 50 PE. Now we're at 120 and our growth is slowing (the law of big numbers). I love this company too, but let's not let that blind us.

To: Richard Nehrboss who wrote (28001)	8/29/1999 6:27:00 PM
From: Brian Malloy	Read Replies (5) \| Respond to of 77397

General note to the thread on CSCO PE lamentations. The PE is high but is it justified? Some make parody of what is going on in the economy today. They keep talking about the lower PE valuations of the 80's. I remember high inflation and interest rates. I remember the asset bubbles in real estate. When Regan took over the presidency this country was on its back. Early post-Vietnam and oil shocks. The auto/steel industry and manufacturing in general was going down the tubes. People were scared that Japan was going to own the USA. It is always good to maintain caution and remember the past. I just don't understand how so many people try and compare what existed in the US economy in the 70's and 80's to what is going on in the late 90's. Yes, the old rules still exist-but there are new rules as well. Too many people are making apples to oranges comparisons in my opinion. Over time, CSCO's PE will invariably decrease at some point. At the same time I think it safe to say that Europe, Asia and most areas in the America's will need a lot of what CSCO offers in the next decade and beyond. It could be that CSCO's PE could be even higher two years from now, or it could be lower. The key is to be in the right stocks for the long term. This provides above average gains over time and a measure of safety should the PE contract. Consider, Home Depot. In Jan 1990 the stock was at $36 and it only had earnings of 11 cents. Those that were scared out of HD because of its high PE are shaking their head today. Yet over the years, the Es have managed to converge towards the Ps. HD is up around 2,500 percent in the 90's and the earnings are more predictable. CSCO has returned even more this decade than HD, and the next decade from the way things are shaping up with the internet and broadband looks pretty good as well, if not better. My point? People should not be afraid to own CSCO, if they are really in it for the long term. Those that are unsure or don't know what they own will continue to kick themselves in the rear over time for selling. We see their posts here from time to time. Gee, I wish I had brought more, if only I had not sold five years ago and so forth and so on. IMHO