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

To: RetiredNow who wrote (67096)	2/16/2005 11:41:30 PM
From: Elroy	Read Replies (4) \| Respond to of 77400

I just feel that Cisco's stock price is dry tinder. One spark will set it alight. I wouldn't get too excited about CSCO. They've already said they will grow revenues, but have shrinking margins as the new technologies have lower margin than the classic router/switch business where they are a monopoly. Hard to argue for multiple expansion when margins are probably staying flat despite revenue growth. CSCO's PE now is about 21x. Dell, which has much, much better growth prospects for a longer time, gets about 25x. I'm not saying CSCO will underperform, but I think it would take some major unexpected surprises to get it to outperform the market. Put your cash in OVTI! Image sensors for camera phones (that's a GROWTH sector!) and PE is about 12x, while most of the semis are about 23x. $4.50 per share cash and zero debt, and highly profitable (operating margins have ranged from 20%-30% over the past 4 quarters). Plus, I think we get a semi rally at some point this year, which will pull OVTI up along with all the other semis. Why would you want CSCO over that??