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

To: John Malloy who wrote (52191)	4/26/2001 10:12:02 PM
From: Stock Farmer	Respond to of 77400

John - yes, excel is great. Any entry that is a percent change from prior year parameterized. Key business ratios adjustable too. But one can go way over the top and end up with six digits of precision and one digit of accuracy too. Back to the thesis though, P/B is easy to calculate but hard to find meaning in. Check JDSU vs CSCO vs NT vs JNPR and look at the different composition of "B". Or another perspective. Ponzi.com is a startup company with Market Cap of 100 M$, 10 M shares B 10 M$ and a P/B of 10. Ponzi sells 1 M$ worth of stock for gold. Puts the gold on the balance sheet. B is now 11 M$. Mkt Cap rises to 110 M$. And precisely zero to do with fundamentals of the business model. So I personally don't like models based on P/B. I would rather use it as a sniff test: "If this is true, what would P/B be at this point?" John.