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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: mtnlady who wrote (38046)	1/16/2001 6:18:09 PM
From: slacker711	Respond to of 54805

. Lower stock prices hurt Cisco more than anyone else because Cisco is so dependent upon buying other companies (with their stock) for their growth. I have never understood this argument. It completely neglects the fact that the price of the companies being acquired has fallen far more dramatically than Cisco's. I dont follow the networking market closely enough to know who would be on Cisco's short list....but I put Corvis, Avici, Sycamore, Redback and ONI Systems on the following chart. siliconinvestor.com Cisco has fallen a little over 40% over the last 100 days while the rest have all fallen at least 60% and have averaged 70%. This doesnt even take into account the companies that have had to hold off going public due to the terrible IPO market. I would be getting a little nervous if I owned a start-up which had previously been thinking about a $10B IPO....a solid $1B in Cisco stock might be looking good right about now. When the times get tough, the Gorilla will only get stronger. I think this is exactly the right time for Cisco to continue their acquisition strategy. Slacker