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


To: Ed Robichaud who wrote (14412)6/5/1998 1:30:00 AM
From: StockMan  Read Replies (5) | Respond to of 77400
 
Re -- I for one look to Lucent to provide the challenge.

Lucent operates on 46% gross margins, Cisco at 65%.

Guess what happens when LU and CSCO compete with similar products (which will have to be at similar prices)

Hint: Cisco's margins goes down. Check out COMS to see what happens when gross margins goes down.

Stockman