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

To: LABMAN who wrote (47366)	1/28/2001 10:45:52 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 77400

I can't remember who it was but I do remember someone predicted a major slow down back when the dot coms started going belly up. CSCO now has to compete with it's own products going on a sort of fire sale. If you want to start up an ISP today there is plenty of used equipment you can get for pennies on the dollar of what new stuff cost. The cycle to get rid of the excess can take up to a year. So we have at least another 6 months to see how much the slow down will effect companies like CSCO , I'm sure they will still be around but I doubt they will trade with a p/e of 100.. Same with all the other tech BS that has it's price based on forward growth.. ---------------- Did any one hear GreenSpam when he said growth was zero ? I don't think many did they just heard rate cuts.. Rate cuts first off may keep the banks from going under with all the bad debt but it don't stimulate growth for a long time. -------------- While the Tech sector has shown a remarkable spring back ( in stock prices ) it's up trend is to much to be maintained in a slowing economy. Take a look at some other major companies like GE..MRK and XOM ( by the way XOM just set an all time record for profits , with a P/E of about 16 so why is it's price falling ? ) There is more going on than the shysters at CNBC are talking about. Here is a major index that if it don't recover spells trouble quote.yahoo.com^VLIC&d=5ym I've been pointing that index out to any one who would look for almost a year. It recently got back aove it's 200DMA and thats good but the last 2 lows broke below a critical base at 400 and that was not good. While it broke it's most recent ( sharp ) down trend it needs to get above 420 to break the long term down trend. This is not some hot index that out does others but it is a good indicator of just how healthy the stock market really is. Had people been watching it they would have seen the melt down of tech coming. If it fails at 420 then this rally will fail too. Jim