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.

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

To: The Phoenix who wrote (44922)	12/19/2000 1:05:04 PM
From: GVTucker	Read Replies (1) \| Respond to of 77400

Phoenix, RE: The fact is CSCO has outperformed. I'd agree with that. Good thing, too, because otherwise the stock price would be a whole lot lower. As it is, CSCO is still trading in excess of 100x the trailing four quarters earnings, in large part because the company has outperformed. It must continue to outperform just to maintain this kind of valuation.

To: The Phoenix who wrote (44922)	12/19/2000 1:25:03 PM
From: bambs	Respond to of 77400

back in feb/march you argued that the growth in earnings and revenue justified the price. You talked about a 1 trillion dollar market by 2005 that csco would have at least 10% of. You argued that csco was a good long term buy at $70. Give credit where credit is due. I said that the growth would prove to not be there in the coming years. I said that spending by telco's would slow...that clecs would go bust...I said the economy would slow...I listed the reasons and the reasons are proving to be true...the stock didn't get ahead of itself...investors like yourself had unrealistic expectations of future growth in earings and revenue. You argued with me at lenght that csco's price was justified. We did the numbers and you said insisted that I didn't know what I am talking about. That facts are on the thread...maybe we should dig up some of are posts to each other from back in March. You just can't admit that I am right and my reasons are valid. The reasons I gave then and now make sense. The p/e of 100+ has to come down...it will. Bambs

To: The Phoenix who wrote (44922)	12/19/2000 1:38:11 PM
From: michael97123	Respond to of 77400

Was Cisco supposed to go up while nasdaq was more than halved. If I remember correctly, csco started the year at 53 and at 43 had dropped 20%, again far outperforming the market it is in. Yes if there was an earnings disappointment, loan defaults etc. the stock could get clobbered but this doesnt appear likely. When nasdaq is again at 3500, csco should be back at 60, outperforming again. These guys are after this stock for so long because it is so successful. Inevitably big multiples for a particular company come down--the really big question is when. I hope they stay short. If the economy rebounds it could be years before csco "matures" to that point and becomes more like GE, not a bad place to end up.