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

To: Joseph G. who wrote (18087)	10/10/1998 10:10:00 PM
From: joe	Read Replies (1) \| Respond to of 77400

Did you account for low interest rates? CSCO earnings are a stream of future income. Present value is a function of future interest rates. You have to make a correction for lower interest rates, which haven't really been done ever since the 30-year bond broke 6.0% (IMO). joe

To: Joseph G. who wrote (18087)	10/10/1998 10:20:00 PM
From: Dr. Bob	Read Replies (2) \| Respond to of 77400

Joseph, If the point of your post is to suggest folks ought to wait until $32 to buy CSCO, I think you and those who listen to you will be quite disappointed in missing out on the truly good buying opportunity(s) presented in 1998. A gorilla, and one that consistently meets or beats earnings estimates, especially one whose CEO says will grow profits at 30 - 50% per year, is very unlikely to trade at a P/E of 22 based on analyst's conservative earnings estimates under any circumstance short of a complete market meltdown. As opposed to "fair price", $32 probably represents the maximum downside risk under a bear market scenario, IMHO. Bob