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

To: john dodson who wrote (51158)	4/6/2001 8:07:42 AM
From: RetiredNow	Respond to of 77398

I agree. I'm going to start to divert some of my bi-weekly savings from mutual funds to Cisco stock starting in May. At these prices, I think I'll double my money in a little more than a year's time. So I want as much as I can get my hands on. A purchase at these prices is such a no brainer. At this point, I don't even care if I catch a falling knife by the edge. Think about it this way. I bought some at $16.50 a few days after selling some at $20.50. In addition, starting in May, every two weeks thereafter, I'll buy more at various prices. Since I beleive this stock is going to $20-25 in just outside of a year's time, what do I care whether I pick it up at $12 or $15? I simply don't care about a few bucks here or there, because long term a few bucks just doesn't matter. I'll let the daytraders scalp their pennies. In a few weeks, I'm going to go long at these prices. I still want to wait for Cisco's one-time charge announcement, though.

To: john dodson who wrote (51158)	4/6/2001 8:12:11 AM
From: JakeStraw	Read Replies (1) \| Respond to of 77398

>>but I'm betting that buying CSCO at $13-$14 is gonna look awfully sweet a year or two out. I think that's probably a safe bet.

To: john dodson who wrote (51158)	4/6/2001 8:17:47 AM
From: Stock Farmer	Read Replies (3) \| Respond to of 77398

Let's quantify "mounds of free cash" Particularly since the company also has mounds of shares. This is the stuff you don't see in the pro-forma report. So bear with me please. Cash and Cash Equivalents in Jan 2001 Q2 report were 4 B$, down 1.5 B$ from October '00 5.5 B$. For the trend impaired, if business doesn't get better than it was during Nov, Dec, Jan (oops), cash on hand dries up around August. Business MUST improve in 2H... or else. A generous 3.5 B$ cash for 3Q would be $0.50 per share. This cash can be recharged from investments. Distribution at YE 2000 was 1/3 treasuries, 2/3 corp bonds & equities. Total at 2Q 2001 was 12 B$, up 0.2 from Q1 2001, despite infusion of 3.8 B$ from operations. A 30% melt in equities since Jan would take further bite from this pile. Let's say net of infusions 11 B$ remains Q3. Gives them access without recourse to borrowing of about 14 B$ - or about $2.00 per share (unlikely a lot of options are getting exercised to dilute ownership). $2.00 per share of cash trading at $15 is not exactly "mounds". Same time, it is a heck of a lot more than most other companies in this climate. And they have no burden of debt servicing. This is my interpretation of their financial statements, just quickly done, so feel free to correct me. John.