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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Brown who wrote (40005)	3/5/2001 11:06:01 AM
From: lightwave51	Respond to of 54805

<< Interesting commentary in regards to Cisco's IOS and their acquisition strategy provided in this BusinessWeek Online article Csco is a great company, I only wish I had invested in it sooner, then I would even at this point be worried about taxes if I sold like UF. Going forward from this point I don't see Csco as a great leader any more as an investment. Is it still a great company--Yes it is--is it a great investment going forward from this point? I think there are better places to put money.

To: Bruce Brown who wrote (40005)	3/5/2001 9:15:39 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 54805

re: CSCO article: Yes, I found the article interesting also. I sold my CSCO in 1999 when they hit a PE of 100, on the general premise that nothing is worth that much. I intend buying back at some point, but I'm in no hurry. My thoughts: 1. The whole telecom/telecom-equip area in in disarray at the moment. A lot of companies have business plans that just aren't viable, and we are at the beginning (just the beginning) of a weeding-out process. I think CSCO will be a survivor, but I doubt that the (recently-reiterated) 30-50% LT growth rate is achievable. 2. CSCO and her peers did exactly the same thing I watched in the mobile-home building industry: make sales numbers by offering easy credit to customers. Sooner or later, this causes trouble. There are very few manufacturing companies that are competent to act as bankers. 3. I had always thought that CSCO's acquisitions were to get products, not people. And this "buying freeze" is a change from their consistent practice for many years, up until very recently. Anyway, if they don't start buying again soon, we are going to find out whether CSCO can develop products in-house.