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

To: larry who wrote (45850)	1/3/2001 12:25:18 PM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

larry, CSCO will have a very hard time reporting larger and larger investment gains While you may be right if the market continues to stay soft through 2001 I heard that CSCO still has $3B in unrealized gains. So this may not be an issue. Also, I think (not sure about this though) CSCO writes down investments as part of R&D which means investments that are minority stakes will still be acretive. Secondly, CSCO will have to raise employee salaries (LU just raised its employee salary by 10% recently while planning to cut work force by 10%) when the stock option is worth nothing more than toilet paper. LU has bigger problems than it's stock price but then most are aware of that. Further I think the employees at LU (after how many warnings and misses) know that they won't see LU at $20 or $30 any time soon. Employees at CSCO (right or wrong) still believe the company's stock will recover. I don't think it's necessary for me to detail how bad the IT spending is for corporates. IT spending has slowed but most of the data I've heard and read suggests it has slowed from white hot to just plain "hot". I'm not sure this is a melt down. All said however CSCO has challenges but I think many are overstating them. At $33 or a trailing PE of 40ish (75 if you use actual earnings) CSCO appears to be fairly valued. OG