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

To: BWAC who wrote (57312)	2/7/2002 8:36:55 PM
From: Sweet Ol	Read Replies (1) \| Respond to of 77400

The effect of removing Goodwill is to reduce the Assets and then when you divide the book value by the billions of shares you have a very small book value. That has an effect on share prices because why would you want to pay $15-20 for a share of a company that only had assets of a miniscule percent of that amount. Of course you would say that you are buying it for the future earnings stream. That leaves us trying to estimate how fast the earnings will grow. 5%? 10%? 30%? 50%? 100%? That is how people come to value the shares of a company. Well, actually there is another way to evaluate stock prices. That is to use Technical Analysis and project the stock price based on what it is doing now and has been doing in the recent past. Either way, it does not look too good in the short term future. Best to all, JRH Disclosure: I am short CSCO.