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

To: jkc who wrote (49733)	3/10/2001 7:45:30 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 77398

I guess Krispy Kreme has much better growth prospects and more visibility than firms like Cisco or Dell Actually, I believe this is true. I think it is likely that lots of people will still want KREM donuts in 10 or 20 years, based on the same recipe they are using today. That provides some good visibility. It is like Coke or Starbucks or McDonald's in that way. It is very hard to unseat these consumer kings. OTOH, maybe someone will make a router better than cisco. Wait, Juniper already did, and took a bunch of market share! Now Cisco strikes back. Let them slug it out--in the meantime, it doesn't help visibility. It is great to have a top-tier consumer brand, and KREM stores are still few around the country. If you haven't learned that high tech cos. have visibility problems and growth problems over the past year, i'm not sure what can teach you. This is not a defense of KREM's PE, but rather an argument against using KREM's PE to say CSCO is cheap. BTW, I too think a PE of 82 is ridiculous for a donut chain, but it sounds to me like this high price has to do with the small float and the high short interest as well as hype about the stock--pricing dynamics that are likely to change over time. In the meantime, I hope to one day try their donuts except I don't want to wait 2 hrs in line for the experience.