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

To: The Phoenix who wrote (15106)	7/16/1998 10:58:00 AM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

Just thought I'd provide some perspective here. Someone earlier pointed out the following about Cisco adding that this is why she felt Cisco was overvalued. Cisco's growth is slowing (later admitted by Cisco) Hmmm, no rocket science here. Much easier to grow a $1B company at high percentages than an $8B company. This is elementary school math. The Networking Industry growth has slowed to 20% (admitted by the analysts) PROJECTED by analysts first off. Second CISCO has consistently grown faster than the market and has consistently increased market share. Cisco will finish their annual year with a growth rate of 27%-29%. Cisco's margins are under pressue (admitted by Cisco) PROJECTED by Cisco. Go back and look at their reports. To everyones surprise margins are holding - even improving slightly. Much of this is due to low overhead sales over the internet and more high end/higher margin router sales. Every conference call CSCO makes mentions this - just part of thier due diligence to investors. Cisco is facing increasing competition (later admitted by chambers) Not even worth a response. This is obvious. You make high margins you attract competition. Marketing 101. Cisco up to now has done very well in a competitive environment. A wise investor will spread their portfolio among the key players in this market such as LU, CSCO, ASND, and NT (even though the bought BAY). Each of these companies will do well for the forseeable future as infrastructure is installed worldwide and broadband speeds are adopted by residential and small business customers. Cisco doesn't have a L3 routing switch yet. Go to: cisco.com Cisco is strong only in the enterprise (check out Ascend (Mory's) comment) Mory? This person is banking on Mory's perspective? YIKE! Nontheless, what does Mory know about Cisco. He hasn't done any DD apparently...says CSCO doesn't have a WAN strategy. Hey, all networking companies should be so screwed up. :) Seriously though, Mory is posturing ASND for a sale. If you take what he says as the gospel you'll be in a world of hurt. Mory is an engineer at heart and doesn't understand business or customer dynamics. He doesn't understand that he is losing business to high end routers... he considers this a router sale and therefore not his business...notwithstanding thier attempt at a "BFR". Also they lost Sprint, and USWEST (including the ATM switch sales) to Cisco. In fact ASND hasn't won a new account since they took a slice of GTE (the ATM core stuff) from CSCO. I'd say Cisco is doing just fine in SP sales and will do even better with their new switches due out this summer and end of the year. I'd say Mory is wrong...listening to himself a little too much. Fortunately he's got good people around him. Nothing like worthy competition! Gary