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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Mephisto who wrote (3074)	12/19/1999 8:32:00 AM
From: Mr.Fun	Read Replies (1) \| Respond to of 34857

Cisco is at 50% P/E premium to Nokia. I expect Nokia to deliver earnings growth of 35% or better, while Cisco is likely to be closer to 30%. When EVERYONE is convinced that a company (Cisco) is a sure bet, there is little room for sentiment to improve particularly given the current P/E of almost 90 times consensus 2000 EPS - yes, I know it will continue to beat consensus by a penny a quarter, but how much multiple expansion do you think Cisco deserves from its all-time high valuation? So at best you get low 30% appreciation, probably mid-to-high 20% appreciation, and possibly a major pull-back should sentiment change or the market tank. Cisco could drop to $70 and still have a higher P/E than Nokia.