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

To: kvkkc1 who wrote (50656)	3/29/2001 12:00:27 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 77400

"what is the fair pe/peg/ps ratio" for CSCO as it matures? Great question. I don't know. Looking around, I console myself that the market doesn't know either. I would suggest confusion is understandable when the company's guidance on E and S and G and projections into the future disappears. No wonder P can change by 50% in a matter of weeks. Off the top of my head I would call it to settle amongst traditional ranges, in the high teens. That is, once the "new reality" has finished educating the "new economy". As to comparing to GE, anything is a good comparator, as long as you make your comparison and then factor in differential risks against the fundamental assumptions. GE is a huge, stable, mature business. Their principle product lines and value mix 5 years from now is likely to be substantially similar to what it was 5 years ago. Their customer base is the US Government and the Global Population. People with real money to pay. They are diversified even within a portfolio of businesses. They are slow to grow but cover the ground like a glacier when they do. They pay a dividend... and so on. CSCO is a huge and unstable, immature business. Their principle product lines and value mix 5 years ago will be dissed as "legacy" 5 years from now. Their customer base are the IT managers of Corporate America, who have been rendered largely impotent recently, or at least are having trouble finding real money. They are concentrated into one explosively growing segment. They move quickly, but change direction like a breeze. They pay no dividend... And So On. John.