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

To: JakeStraw who wrote (53074)	5/17/2001 8:13:55 AM
From: kvkkc1	Read Replies (1) \| Respond to of 77400

re: First Union believes that an appropriate price-to-earnings multiple for a stock with a 20% growth rate is between 20 and 30 times the forward-year earnings, implying a trading range of between $10 and $15. Earnings estimates for calendar 2002 remain unchanged at $0.50. Fiscal year EPS forecasts for 2001 and 2002 are $0.39 and $0.24, respectively. > These guys can't write a coherent report. If they believe that growth will return to 20%, and they believe in their own earnings estimates, how do they come up with a valuation range of $10-$15. Using the high end of the 20-30% range, you get a $7.20-$11.70 valuation range. Tell me why these guys have any credibility. Kind of like nycboy calling a 2000 point range on a 2200 point index, worthless.knc

To: JakeStraw who wrote (53074)	5/17/2001 8:22:39 AM
From: Rob C.	Read Replies (1) \| Respond to of 77400

Jake and all, I know one thing, if CSCO doesn't close above 21 this time around I am selling my whole porfolio. CSCO needs to assume a Nasdaq leadership role in order for the market to move higher. Regards, Rob

To: JakeStraw who wrote (53074)	5/17/2001 9:38:08 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 77400

re: "First Union believes that an appropriate price-to-earnings multiple for a stock with a 20% growth rate is between 20 and 30 times the forward-year earnings" Before the bubble, they used to use trailing earnings. Before the bubble, they said the appropriate PE was equal to (not up to 50% higher) than the growth rate. Maybe a PE 50% higher than the growth rate is justified, if the forward earnings are near-100% certain to happen, recession-proof, in a non-cyclical industry. Like maybe a drug company with a 10% growth rate deserves a PE of 15. We've had recent evidence that Cisco doesn't fit this catagory. Statements like that make me believe we are still in a market bubble.