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

To: Ed Forrest who wrote (45799)	1/3/2001 12:45:27 AM
From: Ibexx	Respond to of 77400

Tuesday January 2, 10:15 pm Eastern Time Cisco Falls Victim to Rumors By Mark Boslet Cisco System took it on the chin again Tuesday as rumors spread throughout Wall Street that the networking giant would not hit growth targets for its second quarter. The slump in the shares came amid a general downturn in technology stocks and a sharp sell-off in networking companies in particular. Cisco's shares fell $4.94 to $33.31, shedding nearly 13 percent and sinking to a new 52-week low. Investors bailed on the stock after rumors spread in Internet chat rooms that the company would miss Wall Street's expectations for its second quarter despite reaffirming a bullish outlook for the period in a meeting for analysts in December. Cisco will report its results in early February. Investors fear that a broad slowdown in spending both on network infrastructure and on the Internet in general will pinch Cisco's sales. These fears were reinforced Tuesday when Robertson Stephens analyst Dane Lewis cut his ratings on a handful of technology infrastructure companies, including storage-equipment vendor EMC. Lewis said the slowdown in spending would not bypass market segments once thought immune from cutbacks, such as storage. Some observers, however, say Cisco's business is broad enough to weather the downturn and international enough to withstand the weakness in its domestic market. Investor Douglas Whitman, manager of Whitman Capital, said Cisco's sales to large corporate customers don't seem to be in danger. "I don't think [the company] has seen a big slowdown." Other networking companies such as Juniper Networks, Redback Networks and Extreme Networks also slumped in Tuesday trading. Cisco's Earnings Soothe Wall Street "Never Fear, Cisco's Here" Ibexx