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

To: GVTucker who wrote (34603)	5/4/2000 2:34:00 PM
From: lawdog	Respond to of 77399

GV, retail should be cash and plastic. Any A/Rs TOY has are very very short term. Not the same animal even if your theory held water. Like I said, A/R and sales rates of change should not ordinarily decouple. When A/R is increasing at twice the rate of sales it could mean that your receivable balance is stagnating. It is a warning sign. That does not mean that can't be other reasons. The cutoff may have caught CSCO at a bad time. It may have been an oddity. We'll see in the next report. I still think you are barking up the wrong tree. Good luck. BTW, you brought up the discussion about balance sheets predicting stock prices. It's too bad that others won't follow your disciplined approach. My point, and I stand by it, is that CSCO's earnings may be of lower quality than previously thought. If that is true, the P/E is not accurate. There are also other risk factors that don't seem to be reflected in CSCOs market cap. You and I both agree that the P/E is too high. What is the actual E? That is a different matter altogether. If CSCO is granting credit to a large number of bankrupts I'd say the credit erisk is very high and the earnings from those companies should be discounted appropriately. Surely you do not disagree.