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

To: Technician who wrote (36124)	5/22/2000 6:55:00 PM
From: The Phoenix	Respond to of 77400

Well, I'll be honest I did fudge it a bit since I was assuming the last three quarters + .16 for Q4. Removing Q4 and adding Q4 for last FY looks like Q499 - 10.5 cents/share (.21 pre-split) Q100 - 12 cents/share (.24 pre-split) Q200 - 12.5 cents/share (.25 pre-split) Q300 - 14 cents/share Let's see... add that up = .49 cents and we have a PE of 112 @$55/share - of course I was using $53 before :)... that's a trailing 4 quarters. Sorry for assuming Q4 was already in... that of course is wrong to do. Yes, I know Yahoo deducts the cost of acquisitions and doing so will result in a higher PE - HOWEVER this is not the earnings numbers that analyst project. FWIW I'd rather have Cisco acquiring companies that will further instantiate them as a leading communications company that putting it in a mattress. I look at these purchases as investments - not expenses. OG

To: Technician who wrote (36124)	5/22/2000 7:08:00 PM
From: Techplayer	Read Replies (1) \| Respond to of 77400

technician, It is interesting to see that bears (as you appear to be) like to base a companies value on a PE based on last years numbers while Wall Street and the Bulls look to next the next several quarters of expectations to determine valuations. CSCO has never (or at least for several years) traded at a PEG of 1. The company has a history of performance that can be counted on by those that invest in the company and has been rewarded with a higher multiple. What would you say a fair value for KO would be? It is trading at a multiple of 40X last 4 quarters earnings and 29X next years, despite a choppy past and an estimated growth rate of 21% which is unlikely to be exceeded. I would believe that most investors will find CSCO to be a more attractive investment at present levels at a PEG of 2 than one of 1.35 for a company like KO. Of course, since sentiment is weak right now, the techs will likely remain weak until the Fed let's it be known where rates will end up. tp