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

To: Gottfried who wrote (51427)	4/16/2001 8:20:28 AM
From: Wyätt Gwyön	Respond to of 77399

Not to argue with your target, but if the stock DID go to 6, wouldn't that mean mean Cisco's biz is in the dumps? well, iirc, csco has already lost more market cap dollars than any company in history, and has quickly gone from 50%+ growth to what is apparently zero growth, with lots of talk of inventory overhangs and layoffs, etc. so i would say in my opinion cisco is already in the dumps, at least by cisco standards. i don't attach a particular stigma to a quoted value of under 10; as long as a company remains fundamentally sound, why pay more than you have to? my idea of a cheap price is that i think cisco is safe to buy only as a value stock. that of course is a different way of looking at cisco than the market has historically. but things are always changing. perhaps cisco will not be a growth stock anymore, in which case, different valuation parameters may be appropriate. interactive.wsj.com "There seems to be this upper boundary of how big a company can get before growth stalls out," says Derek van Bever, chief research officer at the Corporate Executive Board. The researchers focused on revenue growth, which for these companies averaged better than 20% a year during the good times, because they consider it the most important driver of long-term performance. Without growing revenue, the researchers argue, earnings will eventually stall and a company's stock market value will inevitably suffer. The study also found that companies hit their plateau after their period of fastest growth, the time when investors had the greatest expectations for them. But those investors fled when the companies shifted to neutral. According to the study, 69% of the stalled companies ultimately lost more than half their market values. "What's interesting is how permanent the effects of the stall are," says Mr. van Bever. "We never found an instance where a high-growth company stalled to low or no growth then got back up again to that high-growth trajectory." Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved.