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

To: Monty Lenard who wrote (48105)	2/6/2001 11:44:03 AM
From: chic_hearne	Read Replies (2) \| Respond to of 77400

Hi Monty, The financials will be very interesting tonight. Aside from this inventory debate going on, I think the investment gains will be very interesting, also how much they wrote off for bankrupt CLEC's and dot bombs [guidance on this too]. Along the investment gains lines, this is when YoY comparisons will start to get hairy. Last year, I remember thinking to myself "don't they know the position they're putting themselves in?" You'd look at the financials and the previous year would have a big fat ZERO while I was staring at a 9 digit number for funny money gains. I guess when you're growing revenues at 60% and operating income is flat, you've got to come up with something. Hence, the leverage used by becoming a bank/investment house/broker. Well, leverage has a tendency to implode. They aren't selling RHAT for $100 anymore or LNUX for $150 either; and the dot coms and CLEC's they financed are running out of money to pay them back with [these are Crisco's two core business' for those that haven't figured it out]. Leverage is a double edged sword, soon they will find that out. I don't think their financials blow up this Q, but they should show some signs of fracturing. chic