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

To: Joseph G. who wrote (18101)	10/11/1998 2:26:00 AM
From: Eric	Read Replies (1) \| Respond to of 77400

We certainly seem to be having a good discussion of investment philosophies on the thread today! All of us have a method of selecting stocks and determining when to buy and when to sell. Some are pretty involved and some are very simple. I used to look at value and P/E and other such number crunching. I used to invest in things that I really had no good grasp of understanding. When you are young you tend to take big risks but hopefully when you are older the risks one takes becomes more "educated". If I had used value, or P/E I would never have invested in Cisco. My dad, bless his life taught me otherwise. Sometimes you have to break the rule book and come up with another solution that works for you. Since I stuck to stocks that relate to my way of understanding I have done much better. It's funny but it took me about 15 years to get to that point. I used to day trade and have done it for fun in the past. Shorting I thought was for gamblers and having seen what it has done to most people convinced me that it was not for me. (the risks are too great) So I just play the long positions that keep me comfortable at night. To each his own, may you all have a profitable and prosperous year!

To: Joseph G. who wrote (18101)	10/11/1998 12:01:00 PM
From: Gary105	Read Replies (1) \| Respond to of 77400

Imo, current CSCO is close to current fair value which I would place around 55, based on EPS projections of 25% growth and a multiple of 40 on July '99 earnings. Years ago it was growing EPS 50% and selling at trailing p/e of 50. A p/e higher than growth rate is justified by low interest environment (otherwise you would see S&P trading at p/e of 7) but this past summer's p/e was ridiculous. So I think we see a cap on appreciation as well as floor on depreciation. Gary