To: PAUL ROBERTSON who wrote (10910 ) 6/21/2001 9:33:54 PM From: Ian@SI Respond to Large-Cap Tech : Difficult to identify any overriding trend in the market. Clear that the telecom equipment space is the pariah of the technology sector right now. But now that sector CEOs are finally able to admit that the business is not coming back any time soon, may actually make sense to begin picking through the space in anticipation of a short-term bounce... Price action today in telecom and networking suggests that money managers are beginning to rebuild positions in large-cap technology, comfortable that the worst of the downward earnings/revenue revisions are in the past. These are the 3-5 year holders, the types of investors not detoured by the fact that CSCO earnings are projected to fall 29% in 2002 and that based on forward estimates the stock sports a corpulent p/e of 62. They have been through these cycles before, able to appreciate the cyclical nature of the business and that sustained growth brings money back to a stock almost as quickly as a short-squeeze.
