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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (47706)	4/22/2000 1:39:00 PM
From: Benkea	Read Replies (2) \| Respond to of 99985

Gary: "Hogwash... all of it.. including the 20% figure..." It's your position that Morgan Stanley's Barton Biggs made such a public statement with nothing to back it up without regard to legal recourse? "there is no discussion of this risk which would clearly state that CSCO is either making a serious mistake by not disclosing it or it's a fabrication." You mean like its' accounting<g>? "infrastructure build out will continue unabated regardless. SP's have no choice... it's either spend to keep up with all the start-up and incumbent carriers or lose business. They simply have no choice." I think you've lost site of the author's entire premise. The MASSIVE build out which can be found in TRAILING earnings, is LARGELY a result of capital markets which were more silly and generous than ever before. Should every company who chooses to put a .com behind its' name fail to be able to collect $100 mil in an IPO (plus follow ons and debt offerings), they will not have the dough for infrastructure since 99.5% of them are hemoraging cash. But then again, CSCO will just finance it interest and payment free until the equipment becomes obsolete in the hope that the customer (bleeding $ millions annually) will still be around to pay. But hey, at 29X REVENUES, Cisco's current market cap provides plenty of safety for those buying on the hope the above is even slightly incorrect.<g>