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

To: Eric who wrote (11072)	12/20/1997 10:39:00 PM
From: sepku	Respond to of 77400

>>>I agree that Ascend has been knocked down probably too far but the slope is pretty steep in this business. After talking to the Cisco people I realized that they were going to take on Ascend with all guns firing. We will not know the answer for at least a year and a half IMO. It will be an interesting battle, I think I know who will win.<<< I'm not so sure that CSCO will be able to dominate internet/telco networking anywhere near the level of its home turf in router/hubs -- providing it can take a leadership position in marketshare in these catagories at all. CSCO is large and in charge, but it is no MSFT or INTC. CSCO's success could actually work against it in a way. It is forcing the consolidation of its chief rivals, and this is only the beginning. Meanwhile large and powerful entities in other segments of technology are beginning to look enviously at CSCO's margins and growing markets. In the case of internet/telco networking, were ASND to be aquired by either NT or LU within the next 2 years, I don't believe CSCO will have a chance in dominating those two areas of networking. ASND has an awesome end-to-end portfolio in its segments, and as a part of a serious player, ASND is quite a weapon. But I don't believe any networker today has the clout to overcome CSCO in networking overall. CSCO would have to commit a grievous error...perhaps become fat and arrogant like IBM did in the late 80s, early 90s. But I really like the prospects of LU and NT entering networking...they are both quite worthy of taking on CSCO. Each of their R&D budgets alone, are half of CSCO's total revenue. I believe ASND will be able to hold its own until being aquired in the next 2 years. CSCO will force ASND to seek a suitor. But all I care about is seeing $50 next year and a 50% return on my money! You know, I think the 56K standard worked greatly in CSCO's favor for 1997. That stupid face-off between ASND and COMS cannibalized their sales and helped contribute to some dismal earnings. Style Pts.