Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 6:02:51 PM
From: UnBelievable	Respond to of 99985

Haim - Nice Work You should send a copy to some of the analysts and see if they can read financial statements. Of course it won't make any difference to the stock price. JNPR (closed at 158 15/16 - After hours 164 1/4) had a PE of 1052 based on the closing price. Compared to that CSCO, with a P/E of 185, is a bargain. But you better get it quick - I heard they are running out of shares.

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 6:12:46 PM
From: sam_o	Read Replies (1) \| Respond to of 99985

HAIM: AGAIN,,,,, another outstanding retrieval..... Gosh,,you are good!!!!!!!!!!!!! Thank You, Thank You........ PS:I guess it'll sell off tomorrow, cause all the specialists sold in after hours, probably to smaller investors, I guess.... Darn MM... How much is AIR worth? <<ggg>> if it's O, I'm payin the price! Haim what do you forsee here, since this stock is considered one of the Bellweathers?????? Cheers Sam o

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 6:12:50 PM
From: dennis michael patterson	Read Replies (1) \| Respond to of 99985

Good for you Haim!! The price is dropping as well. LU at a new low

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 6:12:52 PM
From: Jacob Snyder	Respond to of 99985

CSCO beats by a penny, (not counting all sorts of creative accounting). Stock, already at a triple-digit PE, is up. This is a recording, replayed every 3 months.

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 6:17:23 PM
From: Sabrejet	Respond to of 99985

Nice job Haim. Indeed the numbers don't lie. The street loves CSCO but at some point with that p.e., it has to stop going up. Oh well, someone will talk it up and again allow "selective amnesia" to over power themselves! Sabre!

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 6:25:57 PM
From: WhatsUpWithThat	Read Replies (2) \| Respond to of 99985

I'd like to know more about the amortization and the purchased in-process R&D numbers before pasting CSCO, though. These are from acquisitions, but how much did those acquired companies add to the revenue numbers to counter the effect of these huge additions to the expense side? Note that CSCO's gross margin improved over 1999; that ain't all bad. And if you discount the effect of the am and purchased R&D write-off, things look a whole bunch better! Are the two expense numbers mentioned above one-time write-offs? I haven't followed CSCO at all (never owned it), so I don't know the answer, but maybe someone else knows off the top of their head. Cheers WUWT

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 8:35:56 PM
From: hhieslmair	Read Replies (2) \| Respond to of 99985

Haim, I see your point, but I'd like to understand better what those numbers really mean (as do others). Is there any insight you could dispense. As WUWT states, "if you discount the effect of the am[ortization] and purchased R&D write-off, things look a whole bunch better!" Is the purchased R&D from the aquisitions? And couldn't that actually be viewed as an asset rather than a liability? HH

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 9:21:38 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 99985

Haim, I am not sure the Street is going to see it your way, since to compensate for their real cash non operating gains of less than $550 MM they have non cash non operating charges of $630 MM in "bought in R&D and Amortization of goodwill", thus reducing their taxable income by a net of $80 MM but keeping the rest of the cash. That does no mean that after marking up the stock to the $68/$70 in post and premarket, they will not use the opportunity to sell it off after the first hour of trading. They have been doing this to companies reporting stellar earnings (except EMLX, recently), and CSCO ios just your normal earnings, as engineered. Zeev

To: Haim R. Branisteanu who wrote (57891)	8/8/2000 10:27:07 PM
From: el paradisio	Respond to of 99985

Haim, CSCO total operating expense is double this year...from 1,444 last year to 2840 this year....too much. el

To: Haim R. Branisteanu who wrote (57891)	8/18/2000 11:54:25 PM
From: Tulvio Durand	Read Replies (1) \| Respond to of 99985

... The whole earning growth came from gains realized from investments and "other income" which amounted to $541 million out of $1,363 pretax earnings. ... Haim, am catching up on my reading after vacation. I share some of the concern in realizing that a substantial portion of reported earnings are not native to Cisco's business. But they are earnings nevertheless. It must be that their investments are paying off handsomely, and CSCO owners are reaping returns as surrogate owners of those investments. Nothing wrong with that. Sort of like owning a well performing mutual fund without paying the taxes. Speculating on those investments, I bet a substantial portion is venture capital funding of high tech development by nascent companies. When these companies do their IPOs, CSCO reaps the payoff in the increased valuation. If their tech stuff is really good, then Cisco buys them out. -- A pretty good strategy either way, and sure beats the returns one gets from spending same money on R&D. Thanks for the analysis. Tulvio