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

To: Bill who wrote (30920)	1/4/2000 10:53:00 AM
From: Jeffrey D	Respond to of 77400

From another thread. Jeff Message 12456156 << Here is a list from TSCN of their 10 HeavyWeights for 2000 Many of The Usual Suspects on this list. >> Stocks in Focus Jan 3 2000 2:45PM CST Archives... The WallStreetCity Select Ten by Blair G. Jeffery, Margaret Medina, Don Diaz, Charles Rotblut, Gardner Landry, Chris Connor & Theo Spradlin The Wall Street City Select Ten is a portfolio of stocks that are expected to outperform the broader market averages over the course of 2000. These securities were selected by group consensus among the entire team of Wall Street City analysts and editors on the basis of business models, underlying fundamentals, and technical strength. In general, all of the stocks listed below represent companies that are either current market leaders or are positioned to capitalize on rapid growth in specific sector niches. The portfolio was constructed with an investment horizon of twelve months and does not involve the use of options or other hedging instruments. Although diversification was considered, it was not a determining factor as the goal of this portfolio is to provide investors with a list of outstanding investment candidates that warrant further research. Company Ticker Price* Comment Cisco Systems CSCO 107-1/8 Cisco is dot com Broadcom BRCM 272-3/8 Pulls the strings on broadband technology PMC Sierra PMCS 160-5/16 PMC Sierra semiconductors improving the speed and performance of the Internet Sun Microsystems SUNW 77-7/16 Dot.coms its way to dominance JDS Uniphase JDSU 161-5/16 The empire of fiber optics resides in JDSU's court. EMC EMC 109-1/4 The Storage Tank for the Internet's data geyser Wal-Mart WMT 69-1/8 Consumer e-commerce category killer. Nokia NOK 191-1/16 Wireless giant with the capacity to grow even more. General Electric GE 154-3/4 Original Dow component well positioned to take advantage of Internet growth. Texas Instruments TXN 96-5/8 The king pin of Digital Signal Processing (DSP) * price as of 12/31/99 THE LIST Cisco Systems, Inc. {CSCO} Cisco ranks as the largest of all the Internet stocks. The company shows a market capitalization of almost $357 billion - almost double that of the second largest Internet company - America Online Inc. {AOL}. That demand has driven this stock to a five year gain of 2,800 percent is very important as institutional and private investors alike scramble to position themselves in the facilitating technology companies of the Internet. More than 2,700 institutions hold some 60 percent of the 3.4 billion CSCO shares outstanding. Thirty analysts give the stock a mean buy, hold, sell rating of 1.3 - a buy. CSCO scores a five-year annualized projected earnings growth rate of 29.6 percent, in the top twenty percent of all companies, but just below the computer-networks industry average. CSCO is the largest Internet company by market capitalization, and its industry is projected to grow earnings at a rate of almost three times that of the S&P 500. This bellwether Internet company pulls in the lion's share of its revenues from the computer networks and Internet industries. CSCO has substantially increased revenues for thirteen consecutive operating quarters, and for FY '99, ended July 31, 1999, the company brought in $12.19 billion in revenues resulting in earnings of $0.62 per share. CSCO shows an intensification of its earnings trend with a three-year EPS growth rate of 26.6 percent and a one-year EPS growth rate of 47.6 percent. The current trend in the technology of interconnectivity implies that CSCO will continue with its present rate of EPS growth. Most importantly, CSCO shows solid fundamentals. The company reports no long-term debt and a superior return on sales of 15 percent. CSCO shows a return on assets of 15.2 percent and a return on equity of 19 percent - all three of these scores rank CSCO in the top ten percent of all stocks with respect to fundamental returns. With a projected earnings growth rate for the next year of only 32.4 percent, a current P/E of 176, and a projected P/E ratio of 83.5, Cisco has already seen the market price in its projected earnings. However, CSCO appears to be in demand with investors, and rolls into this new year in new all-time high territory - again. CSCO scored a new all-time high in ten of the last twelve trading months. The company showed controlled steady growth, which is not indicative of Internet stocks this year, but finished up by some 125 percent. CSCO is a stock to watch for continued steady growth and solid fundamentals into next year.