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

To: JRH who wrote (14874)	6/30/1998 5:38:00 PM
From: JRH	Read Replies (1) \| Respond to of 77400

Cisco Passes AT&T.... (http://pubs.cmpnet.com/internetwk/news/news0630-1.htm) Cisco Outpaces AT&T By JOHN T. MULQUEEN It's not much more than a decade old, but Cisco Systems is already worth more than AT&T. The router/switch manufacturer reached a market valuation of $94.45 billion, compared to AT&T, which is worth $92.6 billion. Cisco' s stock has grown from about $75 in early June to $91.44 yesterday. The stock was helped by a strong recommendation early yesterday from Morgan Stanley. The investment banking house estimated that Cisco's share price could rise to $105 in coming months. AT&T, on the other hand, was hard hit last week by its $48 billion offer for Tele-Communications Inc. The stock was down 13 percent last week but inched up 25 cents to $57.50 .Earlier this month, AT&T's share price was about $61, but rose to $68 ten days ago. "They love their Cisco Systems," said Andy Schopick, a securities analyst at Nutmeg Securities, Westport, Conn. "The company has great profit margins and strong growth and generates a bundle of cash. It is getting rewarded for it." When Cisco was selling for $85 a share, analysts estimated it would cost between $120 and $140 billion to buy the company. "No one is going to buy this company," Schopick said, who found it hard to believe that such a new company could surpass AT&T's market value. "How old is it? About ten years," he added. Of course, if you add Lucent Technologies back to AT&T, the value of the combined company rises considerably. Lucent, which was spun off in September, 1996, has a market value of $108 billion. Its share price has more than doubled since the beginning of the year. The stock reached $82.81 yesterday, up $2.38 for the day. Combine the $108 billion with AT&T's $92.6 billion and you have a company valued at over $200 billion. Add NCR Corp., which was spun off in 1996, and the reconstituted AT&T would be worth about $203.3 billion.