Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: RetiredNow who wrote (53147)	5/18/2001 8:47:16 PM
From: Stock Farmer	Respond to of 77399

LOL... I recall trying to make the same point about six months ago mm. You and a few others were going on about the percentage growth CSCO was making in Optical against NT, and a host of us were saying that a hundred percent of jack squat is still jack squat. So I understand what you are saying. But it is tangential. The point is that CSCO is valued as a PERCENT GROWTH, not ABSOLUTE growth. It is one thing to grow from 5 B$/year to 20 B$/year... quite another to grow from $20 B$/year to $80 B$ per year. It is also a percent of the ENTIRE basket of markets, not just fast growing but relatively miniscule market segments A, B & C. Finally, the point is that being #1 in the market does not guarantee percentage growth leadership. Which is the conventional hogwash. So no, you must watch out for %age growth, not absolute growth. And total absolute growth must meet or exceed a set percent of total absolute market. Which means that most markets must grow faster than average to make up for the (presumably) larger, slower growing markets.