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

To: Shroder Wertheim (Hijacked) who wrote (10839)	12/13/1997 11:24:00 AM
From: t36	Read Replies (1) \| Respond to of 77400

i disagree, their high level of inventory is because of increase in demand..read the story, people were just looking for an excuse to get out...sue

To: Shroder Wertheim (Hijacked) who wrote (10839)	12/13/1997 12:54:00 PM
From: Zoltan!	Respond to of 77400

It's not the COMS situation at all: from the WSJ: While higher inventory can indicate slowing sales, analysts by and large did not see signs that end-demand is softening. Instead, they said, much of the inventory buildup was probably of lower-end products designed for use by small and medium-sized businesses. Cisco sells these products through distributors and has been filling the distribution channel to meet growing end-demand. The inventory numbers reported in the 10Q may simply reflect this buildup as well as Cisco's policy of not recording revenue until products sell through to users, analysts said. The FOOLs should know better, but then again, they invested in COMS didn't they? Their second biggest loser. Regards

To: Shroder Wertheim (Hijacked) who wrote (10839)	12/13/1997 7:46:00 PM
From: Carmine Cammarosano	Read Replies (1) \| Respond to of 77400

Shroder, the ticker is saying sell CSCO...I don't think you even have to look for a reason...we will probably get a bounce from here but I suspect that there will be renewed selling and CSCO could end up in the low $60s...nothing wrong with the company, it is just a bad time for techs and mutual fund managers want to lock in profits...in addition SELLING BEGETS SELLING...now if you take a longer term approach, a smart investor can pick up shares at a good price...but if anyone thinks that they can make money on the upside over the next few week, boy do they need to wake up!

To: Shroder Wertheim (Hijacked) who wrote (10839)	12/14/1997 11:09:00 AM
From: jach	Read Replies (1) \| Respond to of 77400

<Raw materials (000's) $51,802 $89,226 Work in process 97,751 114,724 Finished goods 69,754 21,733 Demonstration systems 21,815 28,994 $241,122 $254,677 As a percentage of total revenues, Cisco's "finished goods" rose from 8.5% of total inventories to 28.9%. Assembled systems ready for sale increased 221.0% quarter-over-quarter, a sign that even nigh invulnerable Cisco may be seeing the same kind of weakness 3Com (Nasdaq: COMS), Cabletron (NYSE: CS), Bay Networks (NYSE: BAY) and Ascend Communications (Nasdaq: ASND) have all reported in the past few weeks. This could also explain the weakness at Kent Electronics' (NYSE: KNT) K*TEC contract manufacturing unit reported last night, as it does business with Cisco.>> Misleading in first saying percentage of total revenues and then used it on total inventory. These numbers (69m$ for finished goods) considering the 2B$(2,000m$) per qtr revenue is nothing. Kent is just one of the many vendors. companies tend to do stock splits when they have visible backlog and orders; also, csco has more products that sell to retail channels now and therefore needs a larger inventory for finished goods. This built-up of inventory reported as part of the news and also acknowledged by an official person is to satisfy these demand.