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

To: Kashish King who wrote (34265)	4/20/2000 8:57:00 PM
From: Gerald Walls	Read Replies (1) \| Respond to of 77400

Maybe you are here to tell us that there is no limit to a stock's price? No, because I agree it's not possible for a company to grow forever (unless it reinvents itself like GE or gets forcibly reinvented like Ma Bell). I'm not, however, conceited enough to think that I know what the limit is while the market does not. The sidelines are covered with the carcasses of those who thought they were smarter than the market. I'll stay with CSCO until CSCO tells me I'm wrong. Besides, it's almost always an unpredictable event and not sheer overvaluation that ends a stock's climb anyway. Some company will be the first trillion dollar company and this one could very well be it. It doesn't look like it'll be Microsoft. At least CSCO's in or buying it's way into the fastest-growing areas. I wish they had a larger optical portfolio, though. Stocks with ultra-large floats are prime pump (no pun intended) targets for mutual fund managers since they can exit quickly without dragging the stock into the toilet. Accumulation/distribution is definitely a concern, but it is with all stocks. The funds can't buy or sell without leaving big footprints, even in the largest cap stocks. IBD does a pretty good job tracking this factor. CSCO currently has EPS/RSI/AD ratings of 98/91/D. This indicates that CSCO is under distribution at this time (scale is A-E) so a warning flag should be raised. It also indicates that CSCO's EPS growth (quality/evenness of growth is factored in, I seem to remember) is better than 98% of all other companies. In my mind the EPS ranking is more important for a long-term holder than the A/D rating, but one shouldn't buy a stock with a D or E rating. I have broken that rule lately with NOK though. Rules always seem to be only a hindrance in the good times...