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

To: tonyt who wrote (50593)	3/28/2001 6:08:32 PM
From: tonyt	Read Replies (1) \| Respond to of 77400

The Cisco Free Fall Continues CISCO'S (NASDAQ:CSCO - news) FREE FALL CONTINUED Wednesday, thanks this time to a warning from Nortel Networks (NYSE:NT - news) that dragged down a Who's Who of telecom-equipment and fiber-optic suppliers. Cisco Systems, which was the most actively traded issue on the Nasdaq, skidded $2.38, or 13%, to $15.75 — another new 52-week low — on three times the average daily volume. Juniper Networks (NASDAQ:JNPR - news) crumbled 16% to $43.89 in sympathy, Corning (NYSE:GLW - news) slumped 14% to $21.47 and JDS Uniphase (NASDAQ:JDSU - news) sank 14% to $19.91 as the Nasdaq fell 118 points to 1854. The world's No. 1 maker of networking equipment for the Internet was damaged not only by its ties to Nortel and reduced spending in the IT sector, but Salomon Smith Barney lowered its earnings estimates for Cisco over weakness in the business and tougher competition. Salomon analyst B. Alexander Henderson lowered Cisco's third-quarter earnings-per-share estimates to eight cents from 12 cents. ``We now expect Cisco to post revenues of $5.4 billion in fiscal 3Q, representing a 20% sequential decline,'' Henderson said in a research note. Salomon Smith Barney, however, kept its Buy/High Risk rating, citing the New Economy bellwether's industry leadership position. For the fiscal year ending in July, Salomon cut San Jose, Calif.-based Cisco's earnings estimate to 54 cents from 60 cents; for fiscal 2002, the estimate was reduced to 50 cents from 68 cents. Just two days ago, Cisco Chief Executive John Chambers said the U.S. economic downturn would continue for a least three quarters and that there were signs of it spreading. Chambers said the outlook for the U.S. economy had deteriorated significantly since Cisco warned in January that it expected the downturn to last two quarters or more. After Wednesday's sell-off, Cisco's shares now stand at just a fraction of the 52-week high of $82.