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

To: Eric who wrote (10720)	12/10/1997 4:23:00 PM
From: Sowbug	Read Replies (1) \| Respond to of 77400

<<We are getting close to another "gift" in the tech sector. >> I think you're right. Everyone keeps saying CSCO is the last networker to fall, just like OXHS was the last health care to crash. I would be concerned if I were a short- to medium-term long in CSCO. Someone a few posts ago mentioned that CSCO didn't have much of an Asian presence. Assuming that's correct, I still just don't see people fleeing other tech stocks and getting into CSCO for safety -- it seems more likely they'll just get out of techs entirely, especially with these guys like Cramer trashing the sector. So if techs really start dropping, it's possible that CSCO will be hit harder than the rest.

To: Eric who wrote (10720)	12/10/1997 4:32:00 PM
From: Zoltan!	Read Replies (1) \| Respond to of 77400

DLJ - Cisco is trading at a discount: In an interesting sidebar to DLJ's downgrade which sent BAY down 9% today is the last paragraph: (re:BAY) - 20 times forward is an appropriate multiple. We think that 20 times forward year estimates is an acceptable multiple to pay for Bay, and may even be a bit high. This would be roughly l times the top line growth rate. Cisco, which is the most comparable company is trading at about 27 times our forward year estimate of 3.25 which is actually a slight discount to the company's top line growth rate of 30%. A 20 times multiple on our estimate of $1.55 leads to a new target price (for BAY) of $31. Regards Regards