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

To: Elroy who wrote (65598)	6/22/2004 1:03:22 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 77400

take a look at these storage stocks, qlgc brcd etc. The VCs I know are still quite hot on storage. qlgc and friends missed lately so there is pressure on the group as a whole and of course buying a broken stock/industry at any price is no bargain. However, netting out the cash from these companies leaves you with some of then trading at 2x SALES with cash balances among many of the players at 600-800mm, and GMs at 50-65%! BRCD is trading at 1x sales if you net out the cash. Storage is a growth area, UNLESS the technology industry is indeed "mature" and every new thing gets commoditized right out of the gate. Is that whats happening? Maybe because all of these companies are offshoring which means china has the keys to the castle from day one.

To: Elroy who wrote (65598)	6/22/2004 1:12:04 PM
From: GVTucker	Read Replies (1) \| Respond to of 77400

CSCO's cash position is a bit less than $19 billion as of the last 10-Q. Of that <$19 billion, there are longer term investments as well as some investments that are in private companies. Those wouldn't be considered cash under any circumstances. Still, though, it isn't excessively unreasonable. But if you take out the cash, you also need to take out the income from the cash from the E side of P/E. Doing all that, even taking the rather liberal interpretation of cash, only lowers the PE to 29.9.