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

To: MHA who wrote (50442)	3/26/2001 11:40:09 PM
From: Ed Harrison	Read Replies (3) \| Respond to of 77400

CSCO would only have to grow earnings at a rate of 15.8% annually for 10 years, and 6% annually thereafter to justify its current stock price of $17.88. The low-end estimate from the analysts averages 28%. Using this low-end growth rate and discounting the cash flow by 11% (fairly conservative), the stock has an intrinsic value of about $47 13/16 per share. With it trading at 17 7/8 this stock seems very undervalued to me. Comments?

To: MHA who wrote (50442)	3/26/2001 11:40:50 PM
From: Jay k.	Respond to of 77400

When Chambers made his points this weekend that the slowdown in March may have been the "worst ever experienced by any company" doesnt translate to going from 55% growth rates to 30% growth rates.. I think it signifies much worse. Why pay for a company with a p/e of 45?? Especially if the company has minimal growth to look forward too over the next year.. If I were long and bullish.. I would wait till the earnings for this Q is over before putting your hard earned money into use. It could get much worse for CSCO before it gets better. Everyone keeps saying how you don't want to miss the upturn when and if it happens.. I say you should be worried about the principal you currently own. In times like these.. cash is king.