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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Activatecard who wrote (31187)	8/17/1998 11:27:00 AM
From: Knighty Tin	Respond to of 132070

Steve, This one is a sacred cow and I have had a bad time with Cisco in the past. A few years back, I correctly predicted that they were behind the technology curve and would have to either spend zillions of dollars to catch up or dilute their own stock to acquire the technology they needed. So I bought puts. What I didn't see was that the market would allow them to dilute their stock to buy what they needed without hitting the price at all, and my puts are buried in the tomb of the unknown slackass. <G> Now they are the technology leader. So, I am leery about betting against them. That being said, the stock is bizarre in its overvaluation. We have a 77 pe with a company growing eps at 20% a year. And, IMHO, the networking game is just about finis, as far as rapid profit growth is concerned. So, I don't see a trigger point yet, but if you are patient, a Jan 2000 Leap put, pretty far out of the money, may look awfully pretty in your portfolio. MB