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

To: purecntry5 who wrote (10244)	11/5/1997 12:27:00 AM
From: Bob Kimball	Respond to of 77400

CSCO is a great company. And the stock is a great short. 1) PE is at the high end of its range historically but growth is not increasing commensurately. Global deflationary forces will cause even great companies like CSCO to take an enforced breather. We haven't seen this show up in quarterly results, yet. 2) The last major run up was a classic ending run. Lower volume and lower total point gain than the preceding wave. Doesn't matter if you do e-waves or not. That's a loss of momentum. 3) The Fed has to leave rates alone or drop them, because that's what the market has already priced in. If the Fed stays benign, no move up. If AG makes good on his veiled threat to kick rates up, CSCO, and all others, lose. Let's see where things are come 11/30...