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

To: Wyätt Gwyön who wrote (54401)	8/8/2001 11:37:05 AM
From: RetiredNow	Respond to of 77400

That PE will come down, make no mistake. I think Cisco may just be dead in the water for the next year, until they can start showing meaningful growth again. I might just have to take my profits, diminished though they are, and beef up my mutual funds with them. Anyway, today's action is baffling. I thought we'd go down a little. Maybe people don't know how to react yet.

To: Wyätt Gwyön who wrote (54401)	8/8/2001 3:25:04 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 77400

the consensus PE on 02 earnings at 111. You will be too pessimistic, if you use trough earnings, for a cyclical company, to guess what a reasonable valuation is. Just as almost everyone was too optimistic, using peak cyclical earnings (and extrapolating them linearly into the future), during the Bubble. Using the mid-point between trough and peak earnings would be a reasonable way to do it. However, I agree with mindmeld, that using cash flow is better.