Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jacob Snyder who wrote (50605)	3/28/2001 7:38:06 PM
From: Eric	Read Replies (2) \| Respond to of 77400

Well folks, I hate to say it but I think Cisco is going to warn either tomorrow or in the next few days. We are one month away from the end of the qtr and now is an excellent time to spill bad news. NT's announcement speaks volumes as to what's happening in this environment. I hope I'm wrong but my gut is telling me otherwise. JMHO Eric

To: Jacob Snyder who wrote (50605)	3/28/2001 7:43:28 PM
From: Jacob Snyder	Read Replies (4) \| Respond to of 77400

I didn't realise they had stopped acquiring in 1998 also. Odd, that they stop buying when prices are lowest. In industries that have been cyclical for a long time, management has learned to hoard cash in good times, and then buy cheap assets during downturns, so that they go into the upturns with bigger market share. AMAT does an especially good job at this. One way to try and time the bottom in semi-equips, is when AMAT buys a small niche player (when the stocks are 70-90% off their highs). If network equip is going to be cyclical, this is a skill CSCO management needs to learn. Another skill they need to learn, is how to assess the credit quality of their customers. Or maybe just leave that job to the banks. My guess is, they've done the numbers, and realize their entire current pile of cash is going to evaporate, over the next 12-18 months, so none of it is available for acquisitions. They could still use their stock, though. Yes, I know CSCO is >80% off its highs, but so is everything else in the sector.

To: Jacob Snyder who wrote (50605)	3/28/2001 9:44:50 PM
From: Wyätt Gwyön	Respond to of 77400

has put an informal hold on making any more acquisitions because of the drop in the high-tech market that flies in the face of the argument some have made here that cisco would somehow take advantage of other cos' being knocked down to do a bunch of acquisitions. a weak market is indeed a good time to do some acquiring, if the acquirer has something to buy with besides a crushed stock. some would point to cisco's large cash hoard. if cisco won't buy with cash, that may be an indication they don't think things are cheap enough on an absolute (DCF) basis. even after all the blood spilt thus far.