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

To: Ed Forrest who wrote (38469)	7/24/2000 11:24:55 AM
From: telecomguy	Read Replies (1) \| Respond to of 77398

"has already done" the gorilla bit. You are talking in past tense Ed. That means CSCO price is well reflective of the fact that they became a gorilla in enterprise routing. No one (including me) is disputing that. The problem as I said is that the same multiple premium valuation is being applied as CSCO tries to become a Gorilla in a NEW JUNGLE. If I was an investor, I would WAIT and see what evidence there is of CSCO becoming the king of the new jungle BEFORE applying the same multiple! Even if CSCO became successful in the Carrier space (and that is a one mighty big IF), the current valuation assumes this as a fact when it the probability of this is actually on the low side. So how can you win with CSCO's current valuation? You can't. Once the market start to understand this, there will be a correction in the CSCO price. When that will happen -- I don't know but I am pretty sure it will happen relatively soon.