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

To: RetiredNow who wrote (52354)	5/6/2001 9:46:38 AM
From: flint	Read Replies (1) \| Respond to of 77399

A person that bought Cisco at $.65 a share made a great investment choice. Today Cisco claims they earns 1/2 that in one year. Clearly Cisco could pay a decent to dividend from this person perspective. A growth company like Cisco continually re-invest in itself. Furthering its earnings capabilities. Ultimitly this would mean greater earnings, greater potential to recognize the share holder, and increase stock valuation. If Cisco were to grow at 15% for the next 2 years, and 10% for the next 5 years, and then 6% there after. It would be impossible for their re-investments in themselves to ever come back to the share holder in a dividend that would justify todays stock price. You apparently believe Cisco will grow at 50% per year forever despite limitations in the spending of their customers, and despite the fact that a 5% growth in the economy is consider a boom. If you believe Cisco's hype, then in 10 years Cisco will have the means to pay $25 per year in dividends. Assuming the growth will last forever this company would then be worth over $400 per share to you or another company. You could back this $400 to today and say the stock is worth $100 today. I'm guessing that last year you were claiming Cisco would be worth $100 today.