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

To: SouthFloridaGuy who wrote (55709)	9/27/2001 5:34:53 PM
From: RetiredNow	Respond to of 77400

HI NYCBoy, here are the answers to your questions: Why do you assume future positive cash flows? Why do you assume that CSCO hasn't totally written down their investments - I venture to say they are at least 50% overstated. It's a safe assumption, given that they have stellar management, have always had positive cash flows, and currently have positive cash flows. Cash and investments? Plenty of companies trade at a discount to cash value because they are burning cash like nobody's business. Definitely valid for companies burning cash. But Cisco is generating, not burning, cash. If CSCO doesn't lay off more people and close off some capacity, they will find themselves in that same boat. I can't believe that Sun is just finally reviewing their "no layoff" policy. This superman attitude (remember, 30-50% earnings growth after the bottom fiasco?) amongst New Economy companies has to stop NOW - game over for God's sake. 30-50% is certainly a joke. I think they will be lucky to get 20% growth in the future. But the game is far from over. In the latest research, Cisco has been shown to be gaining a tremendous about of market share from their adversaries since this slowdown begun. For instance, 90% of 3Com's former enterprise business is now in Cisco's hands. Cisco is the gorilla and they are doing what they do best. When the economy recovers, so will Cisco. They won't see their former highs for another decade, if ever. But anyone looking do double their money in 3-5 years, has a safe bet with Cisco at these levels.

To: SouthFloridaGuy who wrote (55709)	9/27/2001 5:34:54 PM
From: RetiredNow	Respond to of 77400

HI NYCBoy, here are the answers to your questions: Why do you assume future positive cash flows? Why do you assume that CSCO hasn't totally written down their investments - I venture to say they are at least 50% overstated. It's a safe assumption, given that they have stellar management, have always had positive cash flows, and currently have positive cash flows. Cash and investments? Plenty of companies trade at a discount to cash value because they are burning cash like nobody's business. Definitely valid for companies burning cash. But Cisco is generating, not burning, cash. If CSCO doesn't lay off more people and close off some capacity, they will find themselves in that same boat. I can't believe that Sun is just finally reviewing their "no layoff" policy. This superman attitude (remember, 30-50% earnings growth after the bottom fiasco?) amongst New Economy companies has to stop NOW - game over for God's sake. 30-50% is certainly a joke. I think they will be lucky to get 20% growth in the future. But the game is far from over. In the latest research, Cisco has been shown to be gaining a tremendous about of market share from their adversaries since this slowdown begun. For instance, 90% of 3Com's former enterprise business is now in Cisco's hands. Cisco is the gorilla and they are doing what they do best. When the economy recovers, so will Cisco. They won't see their former highs for another decade, if ever. But anyone looking do double their money in 3-5 years, has a safe bet with Cisco at these levels.