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To: NOW who wrote (101077)	5/9/2001 9:23:24 PM
From: Lucretius	Read Replies (1) \| Respond to of 436258

roflmao!! classic... LOL

To: NOW who wrote (101077)	5/9/2001 9:26:32 PM
From: Giordano Bruno	Read Replies (2) \| Respond to of 436258

Prudent Bear on Cisco... >>As everybody now knows, CSCO reported last night, and the news was not good. Without their massive inventory charge, they made 3 cents. Including the charge, they lost 37 cents. More importantly, their guidance was cloudy to say the least as they still claim to have “no visibility.” Chambers did have the following to say though: “What we have clearly seen over the last several years is the speed at which this new economy can move in both directions. Changes that used to take place over multiple quarters, or even over years, now take place within months. It is also now clear to us that the peaks in this new economy will be much higher and the valleys will be much lower, and the movement between these peaks and valleys will be much faster. We are now in a valley much deeper than any of us anticipated and we believe the basic issues are macro economic and capital spending related.” Huh? Well, I guess that clears things up? Besides leaving me wondering what in the world he’s trying to say there, it sure sounded like he was describing a very cyclical company. Other cyclical-type companies typically have earnings multiples in the single digits. If technology is cyclical (which it is), CSCO still has a long way to fall just to compress its current trailing earnings multiple of 35x, not to mention the current contraction in earnings that it is undergoing. <<