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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (24324)	7/13/2006 4:27:39 PM
From: monicadepp	Read Replies (2) \| Respond to of 78687

Hi, The margins are considerably down from the boom 2000 levels. AMAT and CSCO have yet to earn the amounts of money they earned in 199-2000. So much for economic growth. It is margins exactly I am talking (and worried) about. The margins are obviously going down from increasing Asian competition-the costs are way too low there and they quality of the product is about the same (patrotism notwithstanding). My portfolio is a deep sea of red after today and I am depressed. Or very sad at least... Monica

To: Spekulatius who wrote (24324)	7/26/2006 2:07:14 PM
From: gcrispin	Respond to of 78687

I'm a little late to this discussion, but I think CSCO's management is too savvy to be eaten alive. I don't own CSCO but I like to look at what companies they are buying as they are usually ahead of the curve in terms of what they think will increase their revenues and margins. That's not to say that CSCO doesn't have competition in their traditional markets. Probably one way to follow their competition is to see what joint-ventures are emerging. The Huawei-3Com joint venture is an attempt by a struggling company to become competitive with CSCO again. The project is doing well as their revenues are increasing. And COMS isn't the only one looking for help. Nortel has an agreement with Huawei and Motorola announced one today. yahoo.reuters.com So I don't see it as us vs. them, but Chinese/North American joint ventures getting together to stay competitive against the gorillas of the sector.