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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (46779)	2/6/2001 5:57:13 PM
From: American Spirit	Respond to of 57584

Inventory problems are with every company now and should not be a surprise to anyone. One reason CSCO is down 50% from its high. When nobody bought in December (after a strong November) that caused a glut from telcoms to hardware companies. Those inventories are being burned off rather quickly. Chambers is right about a one-time slowdown. In the meantime this creates price pressures which eliminate inflation and companies streamline and get rid of their fat. Why point to inventory problems now when that's been old news for quite some time? Just a temporary perception, a daily news spin. "CSCO missed" but CSCO also still grows by 50%. Their longterm guidance is 30-50% growth. So is this a disappointment? Only if you see the glass as half empty, things getting worse and old news as worth repeating. Bottomline, it's been priced in. At $50 you'd have a point but not at $33. CSCO is still growing at a phenomenal pace. All considered though I'd say that conservatively the trading range now is $31-$45. So a buy at $33 isn't such a bad idea. Buy into the weakness and sell into the strength, remember. Profit often. And don't fight the Fed. I bought at $34 and my target is $39. Not much to ask. And bet I get it. At least I know I'll break even.