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: Paul Shread who wrote (49416)	2/27/2001 11:43:22 AM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 77399

That makes them less vulnerable to disruption than most tech companies, Paul, I disagree. I think a company must lead in disruptive technology. The company who leads in disruptive technology is the one who gets to set the standards others must follow. The first to market with disruptive technology usually, but not always, seems to gain the major market share. JMO.

To: Paul Shread who wrote (49416)	2/27/2001 2:23:31 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 77399

re: business model dependant on acquisition: This works if, and only if, CSCO has a valuation greater than the companies they are acquiring. So, as long as CSCO's valuation declines less than the (generally smaller and/or private) companies they are going to buy, then everything is OK. Also, they have a pile of cash, which now can buy a lot more than in 1999-2000. Chambers recently said that acquisitions would continue unabated, and that private companies they were looking to acquire were now available for 20% of their previous valuations. Integrating acquisitions is something a lot of companies do badly, but Cisco has shown a consistent track record of doing it well. One negative is that all the acquisitions has given the Creative Accountants a field day to play games with the numbers. So, not only am I uncertain about future earnings, sales, margins, etc., but I am also uncertain about past reported numbers. Cisco has deferred a lot of costs into the future, a sin all the techs are guilty of.