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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (32120)	5/7/2000 11:04:00 PM
From: Rich1	Respond to of 63513

If CSCO surprises on the upside we will get our Bull rally into FOMC. Amazing that they all wrote the same story at the same time. From a contrarian standpoint this is bullish.

To: Jorj X Mckie who wrote (32120)	5/7/2000 11:26:00 PM
From: Doppler	Respond to of 63513

Well it certainly is ready to break one way or the other chart wise. 1 pt is on a buy signal. 2 pt on a sell. It is right at the apex of a perfect triangle. BRL above, intermediate BSL right below. Long term BSL way below. Wish I knew which way it would break, because it looks like a pretty big move upcoming. Edit.- nice little palindromic grub as well here.

To: Jorj X Mckie who wrote (32120)	5/8/2000 2:02:00 AM
From: Sarkie	Read Replies (1) \| Respond to of 63513

QLogic buys Ancor for $1.8 billion in stock-WSJ ============================================================ NEW YORK, May 8 (Reuters) - QLogic Corp. (NASDAQ:QLGC), which makes high-speed electronic connector components, agreed to buy Ancor Communications (NASDAQ:ANCR), which provides fiber switches for data storage networks, in a $1.8 billion stock deal, the Wall Street Journal reported in its online edition on Monday. The Journal, citing company officials, said the deal values Ancor at $52.71 a share, well above its Friday closing price of 31-3/16 on the Nasdaq stock market. Ancor shareholders will receive 0.5275 a share of QLogic for each share of Ancor under terms of the deal, which is expected to be announced as early as Monday, the report said. The Journal said Goldman Sachs Group Inc. (NYSE:GS) advised Ancor on the deal, while SG Cowen served as QLogic's financial adviser.

To: Jorj X Mckie who wrote (32120)	5/8/2000 8:01:00 AM
From: Edwarda	Read Replies (1) \| Respond to of 63513

But the timing of the articles is very interesting to me. Almost like someone wants the stock cheaper. I guess that the important questions to ask are "what growth rate in revenues would justify the current valuation?" "What growth rate in profitability would justify the current valuation?". And then we can sit back and see if CSCO meets those requirements. Frankly, the timing looks to me to be saying that the summer swoon is upon us again. However, I'll take a stab at coming up with something in the valuation question. Let's assume revenue growth of 42% for fiscal 2000 and 34% for fiscal 2001, getting us up to $28 billion for calendar 2001 with an operating income margin of 34%. Five-year earnings per share growth looks to be about 30%. I'd say that a target price over the next 12 months of $75 based on a multiple of 20 times calendar 2001 revenues--a valuation between that of the traditional telecom equipment suppliers and that of the emerging data networking companies--looks appropriate. This valuation works out to about 100 times calendar 2001 estimated earnings per share of 73 cents. What do you think?

To: Jorj X Mckie who wrote (32120)	5/8/2000 1:12:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 63513

MSDW's morning newsletter thoughts on CSCO... Cisco (CSCO-$68-SB) Acquires ArrowPoint; Reiterate Strong Buy George Kelly CSCO acquires web switch maker ArrowPoint (ARPT-$140-NR) for $5.7B. This is CSCO's 2nd largest acquisition. ARPT makes switches for ISPs, ASPs and e-commerce companies like EXDS, ATHM, NAVI. We believe ARPT products broaden CSCO's offering. ARPTs products will be added to CSCO's Catalyst line and its Layer 7 technology, elevating the functionality of CSCO's broad line. The acquisition will have a neutral impact on F2000 and will be accretive in C2001. No change to our model at this time. CSCO reports on 5/9, and investors will receive more detailed guidance then. We reiterate our Strong Buy rating and 12-month price target of $75. We believe this is a positive move that broadens CSCO's product offering and is in-line with its strategy of expanding its business in adjacent markets.