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

To: RetiredNow who wrote (69402)	1/1/2006 11:48:28 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 77397

Don't you think the fundamentals are catching up to the price by now, though? Yup... but that doesn't mean you should expect blockbuster capital gains. This thing is looking cheap to me. Hmmm... when hasn't CSCO looked cheap to you? <g> Maybe 2006 is the year large caps in general, and Cisco in particular, take off. What do you think? It sure is getting late in the business cycle, though. I've got my bets elsewhere. I think money is to be made in the madness of crowds and, in particular, my boomer buddies who are busy squirreling away their retirement savings. The trick IMO is to anticipate what they will want and be there before them, sell into their demand. My workhorse, MO has more than doubled while CSCO and most of the S&P stagnated. Why do you think that might be?

To: RetiredNow who wrote (69402)	1/2/2006 7:49:57 PM
From: Paul V.	Read Replies (1) \| Respond to of 77397

mindmeld, take your pick! I just ran the latest valueline data using NAIC software. The average high pe for the last five years was 34.6, low average pe was 21, average pe was 27.8 with a current pe of 19.9. Valueline has a concensus annual eps of $1.05 and Wall Street Journal Electron edition has $1.08. Therefore, using the various above pe and eps data we have the following: At $1.05 EPS x 34.6 = $36.33; at 21 pe you get $22.05; at 27.8 pe you get $29.19 and at 19.9 pe you get $20.89. If you use the WSJ analyst guide of $1.08 at 34.6 pe you get $36.33; at 21 pe you get $22.68, at 27.8 pe you get $30.02; and at 19.9 pe you get $21.49. So take your choice. My guess is $29.19 using a pe average for the last five years of 27.8 x $1.05 eps = $29.19 high for the year. Valueline has a range $25-40 three to five years out. Paul