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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Suresh who wrote (16378)	6/5/1998 4:09:00 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69035

Hello Suresha, >> During the CC I never got the impression that their growth rate will >>lag the industry. I don't know for sure. I have not had a chance to catch up on all the news in the sector and CSCO in particular. I didn't get a chance to hear the conference call either as I was away on business. They have not made a acquisition as far as I know. I think the problem is that we are seeing evidence that the growth rate in dollar terms for the industry is starting to slow. CS started it recently when they announced a 42 percent price cut of their GigaSwitch/ATM product. Router are being fazed out to a certain extend. Everyone was counting on gigabit ethernet to get sales growing in the 30 percent and above rates again. With this price cut it is obvious that margins will be contracting faster than on previous product lines. I think the analyst are looking at this as a start of a new price war. The level of demand may be slowing so everyone will be fighting for market share. Harry