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

To: The Phoenix who wrote (35515)	5/14/2000 1:00:00 PM
From: JRH	Read Replies (1) \| Respond to of 77400

Gary: More info on financing that I grabbed from the CC (I reported this to my investment club who had similar concerns): - Cisco has done about $2 billion in vendor financing, which is a combination of leases and structured loans. - 7% of 3rd quarter revenue was from both Cisco and 3rd party financing - 5% of 3rd quarter revenue was from Cisco financing alone - 90% of the 5% is financing to large enterprise customers (ie Fortune 100/500 companies, most likely) and top-tier service providers (i.e. AT&T, Sprint, MCI Worldcom, etc.) - The other 10% of the financing was to more risky companies - Cisco has a historical loss rate on their financing of less than 1% (of course, the dot-coms don't have a problem paying right now) Justin

To: The Phoenix who wrote (35515)	5/17/2000 8:40:00 PM
From: lawdog	Read Replies (1) \| Respond to of 77400

Gary, thanks for the info. I had to listen to cc myself, but it is true. CSCO looked pretty good on the vendor financing last qtr. But, it wasn't entirely clear that previous qtrs hadn't been stacked with .bomb vf and some of the terms that were being tossed around weren't defined so they could have been talking about BFE Telecom for all we know. The analysts were too busy patting Chambers and Co. on the back to ask any really hard questions. I guess when you have a record like CSCO they just stop asking. I've always found where there's smoke there's fire. There is no way that CSCO has cast some magic spell that shields it from the vendor financing problems facing CSCO's peers. Another problem is the glut of used telecom equip will clog the market when the inevitable .bomb meltdown occurs. There's also some funny stuff going on in China right now (another Asian crisis isn't entirely out of the question), although it is only speculation and rumor right now. The Chinese aren't known for their open information policies so it's no wonder that rumor gets spread so easily. As if the wasn't enough you get Europe, which has looked better, and Greeny slamming us with interest rate increases. Gawd it's ugly, no I've always found where there's smoke there's fire. There is no way that CSCO has cast some magic spell that shields it from the vendor financing problems facing CSCO's peers.