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

To: Cynic 2005 who wrote (18016)	10/8/1998 11:16:00 PM
From: JeffT	Read Replies (1) \| Respond to of 77400

Just picked this up...... sounds very interesting. Top Stories: Value Players Jump on Cisco By Kevin Petrie Staff Reporter 10/8/98 3:27 PM ET Once Cisco (CSCO:Nasdaq) was a safer play than bonds. No longer. The technology general has lost some 30% of its market value in less than two weeks, scraping a level it reached early this spring. How times have changed. Back then, money managers bought Cisco as the only safe play in networking. Now, it's bleeding more profusely than the Nasdaq itself. Value players are now jumping in to snap up shares cheaply. Who's selling -- hedge funds, amateurs or mutual fund managers? "Anyone who can find a bid," says one trader on the West Coast. "People are selling what they can sell. And they can sell Cisco because it's so liquid." The trader says investors have not spotted fundamental cracks in the company, and he does think that it can reclaim its popularity. Global economic weakness and the specter of a recession in the U.S. have prompted the selloff of this pricey stock, which still trades at 56 times trailing profits. For now, Cisco's business remains healthy, according to two long investors who, nevertheless, are dazed at the massive volumes of shares that move across the tape. "It's a market issue," says Reed Bender, an analyst with the investment manager Robert Bender & Associates in Los Angeles. Bender recently checked with Cisco's suppliers and decided the company is on track to meet analysts' profit estimates of 33 cents a share, up 26% from one year ago. Bender does believe carriers might slow their network investments. But Wall Street has sold too much, he says. Despite its vice-like grip on the corporate network business, Cisco is exposed to the gloomy global economy. In the July fiscal year, it booked 40% of its sales to international accounts. "To be selling Cisco, you need to be extrapolating that we are going to see a tremendous slowdown and economic contraction," says Peter Deininger, an analyst with Firstar Investments. He says is standing pat with Cisco right now. Cisco did not return calls for comment on its earnings outlook. The company typically keeps quiet between quarterly reports.