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

To: JF Quinnelly who wrote (14993)	7/11/1998 4:50:00 PM
From: IBthinkin	Read Replies (2) \| Respond to of 77400

I think about puts every so often but I never have bought any. I have sold covered calls in the past. That's been hit and miss. As for the p/e double to triple the growth rate, it depends whose numbers you want to believe. As far as ttm shown on Yahoo, they don't exclude the non-recurring charges. If you look at 99 expected earnings it results in a p/e of about 42 or 43. Not that outrageous for a company with CSCO's margins. In comparison to their competitors, LU, COMS, BAY, NT, if you consider them relevant competition, CSCO looks very reasonable. I was reading an article about evaluating stocks with little or no earnings not too long ago, and they mentioned a technique which includes adding back R&D expenses to net income, which in CSCO's case gives about another $1 per share to earnings. This technique gives CSCO a 99 based p/e of about 30. Food for thought. kc