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To: Defrocked who wrote (32096)	5/10/2000 9:02:00 AM
From: Defrocked	Respond to of 42523

CSCO has bounced back to 59 7/8s. FWIW

To: Defrocked who wrote (32096)	5/10/2000 9:08:00 AM
From: MythMan	Read Replies (1) \| Respond to of 42523

>>Cisco's Friday purchase of tiny Arrowpoint simply added an extra dose of gunpowder to the Barron's journalistic cannon. What is quite interesting is that CSCO purchased Arrowpoint just five short weeks after Arrowpoint came public. The folks at Cisco aren't exactly asleep at the switch. Why wait until after the market has pumped additional helium into the Arrowpoint balloon before buying the company? Good for Arrowpoint shareholders. Bad for diluted Cisco shareholders. (You may remember that CSCO purchased Cerent just prior to the latter's own IPO.) The only explanation we can come up with is that exorbitant prices are being extorted from CSCO for state of the art technology. To be so near an IPO in Cerent's case must mean that initial attempts to purchase the company while private failed and that CSCO was forced to cough in the eleventh hour to stop an IPO from potentially ballooning the price further. Obviously, if we are anywhere near correct, things did not go so well in the case of Arrowpoint. To be forced to pay well above the IPO price just five weeks earlier, CSCO must have felt they needed Arrowpoint awfully bad. Alternatively, if Cisco is anywhere near right in the value it paid, Arrowpoint should be preparing a lawsuit against its underwriters. Clearly, making acquisitions is getting a lot tougher for CSCO. << contraryinvestor.com