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

To: RetiredNow who wrote (52759)	5/9/2001 10:14:03 PM
From: yard_man	Read Replies (2) \| Respond to of 77397

>>My bet is that many of them will go bankrupt, but the others will have to keep spending to keep up with demand. If they don't keep spending, then the only other alternative to ensure demand and supply reaches equilibrium is if they start raising prices. << Wrong. There is simply overcapacity. Why do you dismiss this possibility without consideration? Re CSCO's customers: Some will go bankrupt -- others will limp along for years. There's a bandwidth glut, man ... good luck to these folks raising prices -- they can't sell some of the new-fangled services as it is. Do you really need another router? <g> What new service are you going to add or is your biz going to add that requires a service provider to add bandwidth?

To: RetiredNow who wrote (52759)	5/10/2001 1:35:53 AM
From: cthd	Read Replies (2) \| Respond to of 77397

Mindmeld, You're on the right track regarding: "...everyone is bemoaning Cisco's financials...real problem is it's customers..." Yes, customers can make or break a company... and in this case the customer has broken Cisco. All leaders in their industry find ways to execute and make things happen, even in a economic downturn such as now. Look at MSFT, AOL, and DELL. They are all leaders in their industry because they find ways to sustain shareholder value in the face of declining PC sales, lower margins, new competitors (LNUX), and legal hurdles (monopoly & merger). While, I believe J.C. is a incredible CEO, I just don't think CSCO has developed a business model that can survive and maintain market share in economic downturns. What we have here is a company that jumped onto the economic prosperity of the 1990's and forgot to plan for the next decade. (Come'on $2.5B in inventory write-offs? That's a bit short-sighted) We don't hear Michael Dell coming out wanting to write off 80% of last year's profits due to inventory issues.... do we? If CSCO was to be compared to a football team, they had an all-star offense but a powder-puff style defense. Could CSCO be the next AAPL and not the high flier it once was? CTHD P.S. I do enjoy reading your posts. Just wanted to include my $ & sense.