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

To: SouthFloridaGuy who wrote (51958)	4/21/2001 1:53:04 PM
From: Dave	Read Replies (1) \| Respond to of 77397

NYCityBoy, That, in no way means, that they are "stuffing the channel" Channel stuffing is more when a company provides their product to re-sellers. However, just when a company ships products to re-sellers, they cannot book it as revenue.

To: SouthFloridaGuy who wrote (51958)	4/21/2001 3:57:41 PM
From: RetiredNow	Respond to of 77397

An inventory writedown has about as much to do with channel stuffing as a metaphorical foot has to do with your metaphorical derriere. One may eventually be shoved up the other, but it hasn't happened yet. In addition, bloated A/R has more to do with increased financing of customers with poor credit and the longer sales cycles of SPs than with channel stuffing. Their dominance was based on better service and a world class sales team. Their recent malaise is squarely due to Chambers gambling that demand would continue to rise dramaticly. He was wrong and got left holding the bag. Now, while they fix the problems, the stock will languish. After this quarter, the company will be lean and ready to tackle the market again, so the stock has bottomed. The market may not pick back up soon, which will limit the growth of the stock, or it may pick back up in the beginning of next year, which means the stock will rise in anticipation of that happening. Either way, if you're short here, you will suffer losses.