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

To: Sawtooth who wrote (17929)	10/7/1998 5:40:00 PM
From: Sonki	Read Replies (1) \| Respond to of 77400

tima, i watch peg all the time. but for valuations look at spy is @6. for the longest time i felt the danger in the market is the market itself. i hold lot of spy just to diversify. natually spy needs to have bigger peg then an individual stock since there is safety in diversification. growth in the market is slowing down at much faster rate then the slow the slow down in msft and csco this is my reasoning for paying higher valuation for csco

To: Sawtooth who wrote (17929)	10/7/1998 6:08:00 PM
From: joe	Respond to of 77400

You can have a slowdown in PEG, and this will surely adjust the valuation. BUT, we are also having a decrease in rates. This alone adjusts valuations. Combined with slowdown in PEG, IMO, they more or less offset each other. It's hard to tell how much one adjusts more than the others unless you want to whip out numbers, equations, etc. The main thing the market is looking for is some kind of consistency, IMO. If CSCO can at least show steady growth, though slower, this is more than adequate. Steady visibility is what the market would like to see. And, IMO, it may not even trust CSCO CC future estimates, because analysts will say that the world slowdown hasn't been factored into future earnings, and it's too hard for anybody to do so accurately. Therefore, toss out most stocks until there is visibility in "world economy", moreso than visibility in an industry sector....unless of course that sector is immune from world turmoil. Are there many such companies? joe