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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Brown who wrote (74910)	4/14/2001 11:37:47 AM
From: Haim R. Branisteanu	Respond to of 99985

Bruce, my read on CSCO is that they have many investment which are a result of their own vendor financing and not true bona fide investments. Further CSCO generates cash by issuing more shares and accumulating lots of goodwill, which results in direct dilution of shareholders stake. Did you note that the amount of Goodwill almost equals the amount of cash? Has this goodwill any commercial value? Ask yourself how much will remain from CSCO product line and future sales if the company will monazite this goodwill? Erase also the issuance of shares and you have negative cashflow. Further if you would mark to market their investment of $13 billion which are around CSCO current total assets, which also may contain several hundred million in bad receivable due to the DOT COM implosion, shareholder Equity and profits may suffer a substantial blow, which is quite meaningful for a company trading at 40 to 50 P/E. IMHO the jury is still out on CSCO even if it seems to look attractive price wise, not to mention competition with a better mouse trap that CSCO would not be able to buy by "pooling of interests" BWDIK Haim

To: Bruce Brown who wrote (74910)	4/16/2001 5:21:55 PM
From: Haim R. Branisteanu	Read Replies (3) \| Respond to of 99985

Bruce we exchanged views on CSCO this weekend and they warned. This is another reason to be careful about the financial reports of companies who are more interested to promote their stock than their business. By August 8, 2000 ( last year) I mentioned that CSCO earnigns are waning and they did. Message 14182972 Message 14184955 siliconinvestor.com A write off of 2.5 billion dollar is huge by any measure and wen I mentioned that CSCO may join LU in price, today it seems that way. The thing that saddens me most is the fact that many fat cats made millions and hundred of millions on CSCO and touted to stock to the retail investor and are getting away not punished, enjoying their riches on th expense of other victims of their snake oil salemanship. It is plain saddening it is not only biotech it is also High Tech Message 13949693 Haim