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

To: Jorj X Mckie who wrote (47712)	4/22/2000 4:24:00 PM
From: Zeev Hed	Respond to of 99985

If CSCO was indeed financing 20% of it sales in this manner, I would have expected their accts receivable to grow, but they grew at 37% roughly in line with the top line GR, and furthermore, DOS is at a tepid 36. Anytime your CFO keeps DSO under 45, you give him a medal. Of course, it is possible that another "arm" (a finance arm?) of CSCO is providing this financing, but then that must be hidden under "investment", and a perusal of the balance sheet will not show this up as debt to CSCO which might be "doubtful". Having said all this, I still think that 30 times trailing sales is quite a "fair value" for the time being and if the markets turn south next months, as I expect them to, then we may see that valuation go down to "only" 20 times trailing twelve months sales. Zeev

To: Jorj X Mckie who wrote (47712)	4/22/2000 6:45:00 PM
From: Benkea	Read Replies (2) \| Respond to of 99985

Jorj: "It might be constructive to find out how much of Cisco's revenues come from the dotcoms that you mention and how much comes from established old world businesses and service providers as well as what the future slices of the pie are expected to look like." The author also posits that the "old economy" will slow their infrastructure spending if the .coms aren't breathing down their throats thereby forcing them to spend. Many of the "old economy" companies were rushing frantically to spend, spend, spend to keep up with the easy capital obtaining "new economy" .coms who were eating away at their market share (at a loss). Of course, this point is largely moot if the capital markets reopen for the .coms. All FWIW of course.