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

To: Dave who wrote (50282)	3/22/2001 2:54:53 PM
From: cuemaster	Read Replies (3) \| Respond to of 77399

i was talking to some people in the business and they were saying csco was ripe for a 4 for 1 reverse split, has any one else heard this?

To: Dave who wrote (50282)	3/23/2001 4:19:40 PM
From: Alastair McIntosh	Respond to of 77399

Dave, you can find S&P earnings at: yardeni.com Look on page 8 for earnings, currently around $58. Instead on using a specific P/E the Fed funds model compares the forward earnings yield to the 10 year Treasury bond yield. Using this model the S&P is now fairly valued. However, in a market correction the S&P can become 15 to 20% (or more if you go back to 1979 - 80) undervalued. Fair value does come down as earnings estimates come down. However declining bond yields help tp offset the reduction in earnings estimates.