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

To: Eric who wrote (11928)	1/30/1998 12:31:00 PM
From: Thomas Scharf	Read Replies (1) \| Respond to of 77400

>> I think we have just about reached a short term high here.<< I agree. I also think that the recent pre-earnings exubernace is just setting us up for a fall if earnings only meet projections, similar to last year at this time or '94. I believe that csco is a great company, but why should they beat estimates by significant amount when everyone else is falling short? CSCO may be taking some of the business that the others are losing, but I have to believe that a large part of the problem is a continuation of the softness in the networking hardware business that started early last year with the customer confusion about new standards. I don't think that situation has fully resolved itself. Since I own csco in a taxable account with a cost basis of around $11, I took out some insurance yesterday by buying Feb 60 puts. I cost me around 2% of the share value, but I think that's cheap compared to the risks of having the price drop back below 50. If earnings are good & the stock takes off higher I don't mind losing a little to protect a lot. Good luck to all, Thomas