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

To: t2 who wrote (67730)	4/24/2005 5:31:01 PM
From: RetiredNow	Respond to of 77400

Well, that's a loaded question. You asked, "can it really be worse than last quarter?" Last quarter was pretty darn good. It was another good quarter in a string of 6 good quarters. But Wall Street is ignoring it because Cisco isn't growing revenues at 50% per year anymore. The quarter ending April for Cisco is always softer than the typical January quarter, since their customers don't usually spend alot of their yearly budget in the first quarter of the year. So I would suspect this quarter will be much like the last quarter. I'd bet revenues will be flat and earnings will be flat from last quarter. That will constitue a no surprise quarter and will lower he PE even more, since that will represent a nice increast from the same quarter last year.

To: t2 who wrote (67730)	4/26/2005 6:33:36 AM
From: Amy J	Read Replies (1) \| Respond to of 77400

t2, When was the last time the WS mo-mo movement was right when investing in technology stocks? amgdata.com "Equity funds report net cash inflows totaling $154 million in the week ended 4/20/05 with $184 million going to Non-domestic funds and Domestic funds reporting net cash outflows of -$30 million" ----------------------------------------------------- t2, looks like the overseas capital injection bubble continues. This injection of overseas capital has been over done. When domestic funds are a net negative, it's beginning to look a bit like one more contrarian indicator. After Intel's earnings report, I think Intc might have more potential right now than Csco and here's why: Intel has a large consumer exposure, yet they still did good even as global consumers felt the energy pinch -- now that was quite a nice surprise. But both Intc and Csco look great. Check this chart out below: Note how in his chart, Earnings Growth > PE. Meanwhile, Q1 is suppose to be hightech's dismal quarter too. tinyurl.com The Big Picture Print version Updated: 25-Apr-05 11:28 ET Blue Chip Value (snip) "first quarter operating earnings growth in the aggregate for the S&P 500 is now projected at 13% or above. A little over a month ago, expectations were at 7% to 8%. P/E has Dropped with Rising Earnings Many blue chip stocks reflect the improved valuations in the market. The table below lists some major companies that are still posting outstanding earnings growth, yet have seen their P/Es contract. Intel INTC 21.0% 18.7 20.1 Cisco CSCO 22.2% 20.8 25.0 . Many of these stocks have been stagnant or down for the past six months despite earnings growth near 20%. But that is exactly the point. These are not stocks that Wall Street favors right now, in large part because of concerns about the macroeconomic outlook. Rising inflation has raised fears -------------------- Like Shannon said, go herd! (Shannon, just a little humor here : ) Regards, Amy J