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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (28827)	6/4/1998 11:39:00 AM
From: Thomas M.	Read Replies (1) \| Respond to of 132070

Louie-Louie is paying cash for in these deals, because they are restricted until October 1998 from doing pooling of interest (spinoff regulations). 10-12 times sales in cash seems expensive to me. Tom

To: Knighty Tin who wrote (28827)	6/4/1998 3:06:00 PM
From: yard_man	Read Replies (1) \| Respond to of 132070

OK, perhaps they are not overpaying, but growing quickly with such acquisitions -- isn't it unlikely that all such acquisitions will be accretive to earnings in the next part of the economic cycle and perhaps the cost to "digest" or "integrate" such operations could exacerbate the problems associated with any cyclical slowdown? What's your take on CSCO's and LU's prospects both business-wise and the prices of the stocks for the next 6 - 9 months? Are these guys more immune than others to a general slowdown? (Disclosure: I do have some LU Oct 60's. Probably too early with those, right?)