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

To: Prince who wrote (52252)	5/2/2001 4:42:31 PM
From: GVTucker	Respond to of 77400

Prince, RE: So you don't wait until the turnaround to actually happen to buy, but purchase at least six months before it happens, when things are still gloomy and uncertain. Oh, sorry, I misunderstood initially. The general theory I've heard is related more to the market in general with respect to recessions. The market historically bottomed out 6 months prior to the economy turning up. When you get down to company specifics, though, there is no hard and fast rule. Technicians will tell us that a company's stock price will rally a few months prior to the fundamentals rallying, but there are many, many examples of the indicators being coincident or the stock price actually lagging the fundamentals rather than anticipating the fundamentals. On the way down, there's no question that the stock moved ahead of the fundamentals. CSCO shares peaked the last day of March in 2000. Earnings estimates for CSCO peaked at the end of November that same year, 8 months after the stock. This would tend to support your theory.