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

To: elmatador who wrote (51173)	4/6/2001 12:51:57 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 77398

i think you're mixing together a couple different things that shouldn't be mixed up. one thing (a) is possible bankruptcy (which you mentioned, and which i said seems unlikely); another thing (b) is negative cash flow, and its implications for surplus cash, operating profits, and the share price. w/r/t (a), i think this typically unfolds with a co. carrying a highly leveraged capital structure and unable to service debt out of operating c/f, and also unable to issue new debt, renew existing debt, or sell equity or assets to service debt. imho, such is not cisco's current condition, and as such, i see no reason to consider cisco a bankruptcy candidate. your comparison to LU in this respect is not very apt imho, as it incorporates no appreciation of the differences in their balance sheets. w/r/t (b), i agree with John that the cash flow outlook seems rather negative, and in fact i have been harping about cash flow issues here for many months. my recommendation to review accounting fundamentals remains intact. however, if you can explain in some detail why cisco, in its present condition, should be considered a bankruptcy candidate, i would like very much for you to do so.