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

To: The Phoenix who wrote (42958)	11/7/2000 12:59:21 PM
From: Eric	Respond to of 77400

Gary your right. It's still very much a "growth company". Nice move this morning!

To: The Phoenix who wrote (42958)	11/7/2000 1:39:16 PM
From: All Mtn Ski	Respond to of 77400

Phoenix, I realize the hollow ground I am treading on by pointing out cracks in CSCO's story, but 15X forward sales is still expensive! If you apply the "growth stock" reasoning without looking at valuation measures, you probably would be buying CMTN at $100, TGNT at $80 and MSTR at $300, all major-league losing plays. For example, here is a company that in the last CC confirmed operating income up 85% yoy, goes for a trailing P/E of 49, and price to book at 6.4X and price to sales at 7.3X, all well below its peers: Alpha Industries (AHAA). They manufacture broadband and wireless chips and are the #1 worldwide leader in GaAs switches. I don't mean to plug it, I am long, but it points out why I think CSCO has nearly topped out, and AHAA and its brethren has got lots of appreciation left in it, and the big boys not so much. It is a smaller company with higher growth rates going for about half of the forward projections in CSCO. There are plenty of smaller companies with better growth rates and smaller valuations than the big boys, and while I think CSCO may have at best a 20% gain left in it from here, AHAA should have 100% going forward. Where do you want to invest your money? Not CSCO. Allright, you can let me have it now! <BG> Tom