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

To: telecomguy who wrote (30827)	12/30/1999 2:26:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 77400

Telecomguy, While I do agree that many IP enthusiasts have unrealistic views regarding the migration of voice to all IP based networks there are four things to consider. 1 - that telephony access is clearly migrating quickly - as evidence by the data presented here earlier - and that there are projections that this migration will pick up steam going forward. This was tradtional circuit switched access before. 2 - that long haul will migrate as well... eventually. 3 - that valuations in the tech sector are largely based upon expectations. 4 - that companies like CSCO are valued not only for their expected ability to penetrated the telephony market but also their current position as a leader in a variety of other huge growth markets including cable, DSL, enterprise routing, enterprise switching, core routing, and many others. Telephony however is huge upside opportunity for even a small market share position will translate into huge revenues. Given these it would appear the more exposed stocks would be those that are reliant on circuit switches for a large percentage of their revenue as the growth in these markets is lower - even today (simply because of size) - than IP telephony. When a company has a high valuation it needs to be justified on revenue and/or earnings growth and CSCO is in an excellent position to demonstrate such - without being hindered by having a large portion of their product portfolio exposed to a slow growth (and going forard perhaps flat) market. Yes, it is pretty simple. OG