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

To: Softechie who wrote (46810)	2/6/2001 8:19:35 PM
From: American Spirit	Read Replies (2) \| Respond to of 57584

Greenspan can turn that around quickly and will. Capital spending has a lot to do with a cheap money supply. True we're in the midst of a slow-down but that could speed up quickly very soon. And again the question is - isn't all that already priced in? Just listened to some tech experts on CNBC recommending SUNW here, speculating this might be the bottom for CSCO or is damn close, and that the Fed cuts will indeed spur new spending. In other words they're optimistic, won't fight the Fed and the only question is picking the exact bottom. By the time the bottom is confirmed it's too late because the stock is higher. So will CSCO hold its 31 3/4 52-week low? I would venture to say yes. Nothing in their report was anything that wasn't expected and the only question is how fast the Fed can spur capital expenditures. They also made the point that cap spending came to a sudden halt in December. So why can't it start up suddenly again as well? Indeed it can. And it will, sooner or later. Remember Fed cuts are a more powerful weapon than anything. With zero inflation the Fed can cut all it wants now and no one will do anything but cheer. Fed cut tomorrow? Next week? Don't assume it can't happen. Don't assume we can go down to 4% or even lower interest rates to save this economy. 4% in Europe is typical.

To: Softechie who wrote (46810)	2/7/2001 12:01:32 AM
From: maverick61	Respond to of 57584

Yes, the DSO was troubling - but I actually think its a combination of two things: 1. Trouble from customers paying on a timely basis is indeed one 2. but a second factor is that CSCO pushed hard to get as many sales in the qtr as they could - when typically, their salesman take it easy the last week of a normal quarter once they hit their magic beat by a penny marker (that way, they can hold off orders and get a head start on the next qtr). The later the sale, the more likely it won't be collected. In either case - seeing the DSO increase was not good, although to be fair, its still at a reasonable level overall - just out of typical CSCO levels