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

To: uu who wrote (48324)	2/7/2001 8:49:59 AM
From: bambs	Read Replies (3) \| Respond to of 77400

csco's problem is that their customers are loaded with debt. Many customers are and will be going bust...used csco products starting to flood the market. the macro economic conditions are going to get much worse before they get better. (you ain't seen nothing yet) "don't fight the fed" is a cute catchy phrase. too bad the people using it don't understand what is really going on in the world right now. The fed is f****d! They can't stop this train. Rate weren't even that high. If the rates had been 12-13% and money had poured out of the market and into bonds because of the great return then you could expect that dramatic rate cuts would make things cook. It's time to read your history books and look at the big picture. Forget cute little sayings...it's time for people to wake up! bambs

To: uu who wrote (48324)	2/7/2001 9:56:20 AM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 77400

<<To think that companies such as Cisco or JDSU are going to lose their market cap big time is an investment suicide IMHO. Sure these stocks will always remain expensive and anyone can argue about their overvaluations. But that is how everything is in life! Quality is defined in terms of how much you are willing to spend.>> How do you know this? How can you make such a claim when there is a fundamental shift going on in the customers of Cisco? In addition, how can you say that ANY company should deserve a premium if it cannot grow its earnings, which indeed CSCO has just said? For much of the history of the stock market (prior 1981), stocks actually traded at DISCOUNT multiples in bear markets. The extent of CSCO's overvaluation is purely a liquidity based phenomena caused primarily by a Fed that won't close the spiggot on Money Supply. Easy Money ---> Bubble ----> CSCO goes up ----> Bubble bursts -----> normal valuation for CSCO = 20 (at current earnings) -----> Bear market ------> CSCO = 12 (discounted PE). I am sorry you're losing money on CSCO, but you should have cut your losses at 15% instead of hoping. In addiiton, you're a complete lunatic for catching a falling knife stock. This isn't 1999 anymore. If it does indeed go up after the news due to contrarian forces, I hope you average out and sell for a breakeven.