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

To: larry who wrote (44613)	12/15/2000 2:44:13 PM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

Larry, I think you missed my point.. I was pointing out that CSCO turns much of their earnings back into the company in the form of re-investing and R&D... a reduction in these areas increases earnings per share... so one has to look at how CSCO is spending their gains in order to really understand earnings. The EPS is what they report as earnings OUTSIDE of what they turn back into the company. I don't think CSCO has to cash in more investments to demonstrate earnings growth... this assumption is flawed in that it assumes static, finite, existing markets... The market that CSCO and other infrastructure company's serve is quite dynamic and still growing albeit at a slower pace. Furthermore innovation in software helps maintain margins through differentiation. One can not look at this too simplisticly IMO. OG