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

To: RetiredNow who wrote (49674)	3/8/2001 3:59:38 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 77397

Hi mindmeld: Good question. How to characterize CSCO. At least we can rule out "income" <VBG>. Let's narrow the field to "Value" and "Growth". If "Value" one would expect it to be a well constructed mattress that will grow more comfortable with age. Ultimate goal: Sell this classic antique at some time in the future, maybe bequeath it to your grandchildren. If "Growth" one would expect it to be a nimble and prolific weed, threatening to dominate all other vegetables in the garden. Ultimate goal: fields of green as far as the eye can stretch. Harvest at will. My view that it occupies a strange zone between Growth and Value. Much like an adolescent occupies that strange zone between child and adult. It could easily be called "Growth". Why? Because the corp. strategy is still aggressively growth oriented. Bulk of cash flow is directed towards growth rather than into the coffers. You and the rest of the thread who know something about routers seem to post nothing but about how CSCO will crush competitors and take over their spaces... sounds very growthish to me. But it's not just growth any more. It's passed a critical inflection point. That is, CSCO is not an eToys with an evanescent business model perched upon an economic discontinuity. It is not an AMZN or YHOO whose very existence requires a fundamental change in economics. CSCO will exist tomorrow without prostituting itself to the equity markets. It has emerged. CSCO has entrenched itself into the very fabric of 21'st century society. Just like IBM and Xerox and Coke and other venerable names did in the past. So it's not one of those stocks to short and hold while it goes to zero. That doesn't mean it's a bargain however. It means that a share of CSCO is pretty sure to have real, lasting non-zero value. Once price corrects. Then, I'd put it solidly in the value camp and stop expecting it to grow much faster than your average blue chip. I do expect that to be several months from now and at a lower price than today... So I will not be suprised if Chambers and the BOD realize this and begin act accordingly. Of course, I've been known to be (a) ahead of my time and/or (b) wrong.. John. P.S. The houses have it 2:1 Growth vs Value.