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

To: michael97123 who wrote (50639)	3/29/2001 8:29:12 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 77400

For the forseeable future is Cisco cyclical or is it Growth? here is an interesting interview w/Ravi Suria where he addresses this type of issue. note: he's not talking just about cisco. thestreet.com Brett D. Fromson: After the revenue contraction, when would you expect revenue levels to return to 1999-2000 levels? Ravi Suria: That's hard to say. For companies to spend money on telecom equipment, they have to get it from somewhere -- internal cash flow or the capital markets. In the last few years, it has come from the markets. On the telecom services side, people are beginning to understand that these are no longer growth companies -- they are highly leveraged companies. On the telecom equipment side, the market will realize that they never were secular growth companies. They are capital equipment companies; they're cyclical just like the semiconductor equipment companies. You don't find semiconductor equipment companies giving vendor financing for customers to buy their equipment because they know there's always a downside to a cycle. This is something the telecom equipment manufacturers forgot. Brett D. Fromson: How then do you think these telecom equipment stocks should trade? Ravi Suria: As capital goods stocks. That's what they are. They are not growth companies. The smaller ones can show good growth for a few years, but once they hit a critical mass of revenues, they are cyclicals.