Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: diablo who wrote (12584)	2/19/1998 10:33:00 PM
From: craig crawford	Read Replies (1) \| Respond to of 77400

<< Even though the stock is selling at around 9 times sales, this is near the five-year lows for that ratio. At 32 times cash flow, the stock is again at a five-year low. >> 9 1/2 times sales, what a bargain! Did it ever occur to the author to point out that Cisco is growing at it's slowest rate in history? Maybe there is good reason for Cisco selling at a "bargain" << The basic bullish argument for Cisco has been the growth of the networking industry that is expected to be in the 30-50% range. Cisco is the industry leader and has consistently stated that it intends to grow even faster than the industry at large. >> True, Cisco has grown faster than the industry. But the whole industry grew at about 17% last year (yawn) It's slated to pick up a few percent in 1998. Cisco hasn't even made the low end of the 30-50% range recently. << There was no fundamental justification for the swoon in Cisco's stock price last spring. An investor willing to look beyond the fear of the moment in the networking industry could have picked up Cisco on the cheap >> Oh really? So Cisco should have just kept on climbing back in the spring of 1997? Putting it where today? 100? How would that fit in with the authors view of Cisco as a "bargain". So the author doesn't think the market was acting rational back in the spring of '97? Perhaps the market saw the fundamentals ahead of time which turned out to be year over year growth slowing from the 64% range to 26%. That wasn't a valid reason? Perhaps the market overdid the selling in Cisco last spring (I was even recommending it for purchase back then) but the more than doubling since then is where I have a difference of opinion. Didn't this Motley Fool organization recommend COMS way back when? I wonder if that was a daily double. I'm pretty sure they added it to their portfolio. Let's hope they don't jinx Cisco the way they did COMS.