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

To: RetiredNow who wrote (14745)	6/24/1998 11:23:00 PM
From: Daniel W. Koehler	Respond to of 77400

mindmeld Granted re: the econ of scale...for now. But why was Chambers so hot to ally strategically with LU and NT? Because, presumably the end-to-end solutions provider policy is still the goal. Can you still cover the waterfront as Chambers professes and have econ of scale at all levels. I don't know but as telcom moves inexorably into data and IP, we got some big manufacturing players wanting to get in the network game who are positively drooling at those 60% gross margins. If Chambers elects to "go it alone" , how will CSCO get big enough fast enough to keep up 30%+ growth in earnings when margins eventually fall? Despite these margin fears, I remain long CSCO calls. Daniel