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

To: jach who wrote (17152)	9/18/1998 12:16:00 AM
From: jach	Read Replies (1) \| Respond to of 77397

csco can happen similar to Alcatel with rating of all strong buys 1.1, imo, orders even in can be cancelled or delayed with the situation in asia, europe and latin america. When csco drops, imo, such as happened to alcatel, it will be fast and hard

To: jach who wrote (17152)	9/18/1998 9:08:00 AM
From: Peppe	Read Replies (1) \| Respond to of 77397

Jach, I wasn't referring to the Wal-Mart ethernet hub market. I was referring to the desk-top ethernet switch market. Very different markets indeed. <impossible to maintain 30+% net margin when the big boys like INTC, NT, COMS, and LU will happily sell with only 15% net;> You've got a very interesting group of companies listed here. LU and NT have HUGE overhead and cannot afford to go head to head with CSCO in the lower end of the net market. Their rev/employee is much lower than CSCO's already. As for COMS and INTC, they don't interset with CSCO too much as it is. It is obvious that we're on different trains of thought though. I say let's agree to disagree and hope you don't lose too much money shorting CSCO <ggg> Cheers, Peppe

To: jach who wrote (17152)	9/18/1998 11:05:00 AM
From: The Phoenix	Respond to of 77397

You're right jach, CIsco has no presence in the low end/low margin market. That's why Cisco's margins are higher than COMS and INTC. LU is currently selling in a low margin market as well - that's the late adopter telephony market....it's late in the product life cycle and therefore prices have eroded because product differentiation is limited... It's more of a commodity. In Cisco's market there is continued innovation and although portions of Cisco's portfolio may indeed be in a mature market now, they continue to build new bleeding edge products to backfill with which should help hold margins up. Also note, that Cisco is not just a hardware company and in fact they would have you believe that their real value is in their software... THat's what companies are paying for. ANyone can build a hardware interface or platform, but it's the software that makes it go and Cisco's software is currently the de-facto standard thus commanding a premium. OG