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 (47996)	2/5/2001 3:38:01 PM
From: FESHBACH_DISCIPLE	Read Replies (2) \| Respond to of 77400

well phoenix i watched the parade up and down it was accounting plain and simple. RESTATEMENT WRITEOFFS ETC.

To: The Phoenix who wrote (47996)	2/5/2001 3:44:03 PM
From: GVTucker	Read Replies (2) \| Respond to of 77400

The point isn't why LU tanked. The point is that LU was tanking, and it was very obvious from the balance sheet. The company started missing earnings about 6 months after the balance sheet began seriously deteriorating. That is why people reacted so harshly to CSCO's recent 10-Q. While I don't think that CSCO's business is deteriorating--certainly not to the extent LU's was--the fact is that there were some balance sheet smoking guns last quarter. While there are certainly good, logical business related explanations, as you have pointed out, there are also bad, logical business related explanations. Given CSCO's valuation, there are a lot of people out there that decided that they weren't willing to wait another 3 quarters for more assurance. It is possible that the last quarter was just a blip on the ever rising CSCO boat. It is also possible that last quarter was the inflection point. To not understand both sides is very dangerous.