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

To: ehasfjord who wrote (61479)	9/29/2002 10:33:54 AM
From: Stock Farmer	Read Replies (1) \| Respond to of 77399

ehasfjord, we disagree on the validity of that theory, obviously. The factors you cite are indeed prevalent in the market. But conspiracy moves the market only over periods that are insignificant in the scheme of things. Supply and demand rules over the long term. Those who try to make their money out-witting the professionals in the pits... good luck. But those who use their wits to outwit the amateurs? There is hope. Can't understand AFCI drop to 12+. The company has a 8. cash per share on its balance sheet! As of latest 10Q, AFCI held current assets of 1,048 M$ and faced current liabilities of 308 M$ for a net current balance of 740 M$, not all cash. At a price of $12, the company is selling at 1.05 B$ or about 41% over par on a tangible asset basis. What is AFCI's economic yield? Well, total stockholder's equity went from 840 M$ to 880 M$ in the last six months. Exclude 38 M$ of that as increase in paid in capital and the company itself is generating return on equity of about 0.5% Find me a bond with a yield of 0.5% trading at 41% over par and I'll find you a bond trader with his face on the keyboard. The "plunge" to $12 may simply mark a sudden increase in understanding. John