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

To: jach who wrote (18468)	10/28/1998 5:46:00 AM
From: Bob Davis	Read Replies (3) \| Respond to of 77400

As part of an article about the relative over-valuation of certain "big name" stocks, The Napeague Letter applied certain value-analysis tools to a group of stocks which had been identified as "Pillars of NASDAQ Bull Market" in a Wall Street Journal article on October 6th. One of the stocks that was evaluated was Cisco Systems - (NASDAQ:CSCO). If you would like to see the analysis itself, go to napeague.com Bob Davis The Napeague Letter napeague.com

To: jach who wrote (18468)	10/28/1998 11:30:00 AM
From: The Phoenix	Read Replies (2) \| Respond to of 77400

Jach, you've been doing too many "Bongs". HA! CSCO's margin will not drop from 65% to 20% in one year. Tight margins are an attribute of commodity driven markets. The technology market continues to innovate, and the rules continue to change. The "adoption curve" continues to shift. Now, I do agree that there is a large percentage of CSCO products heading into a the mature portion of their lifecycle and therefore margins may indeed soften. CSCO's management has been saying this during every conference call for over a year...yet margins continue to creep up much to everyone's amazement. I don't expect this to continue but 20% margins....like I said, you're doing to many BONG's. Why, when CSCO brings new innovative products to market, faster better bigger switch/routers, data/voice integration, improved security, circuit switch replacement products, cable infrastructure replacement products, etc.. etc.. (the list is huge), why will margins sink to 20%. Don't tell me because of their routers. A year from now CSCO's enterprise routers will still lead the industry yet will also be a smaller part of CSCO's overall business due to growth in all these new areas. You need to do a bit more DD before you post your useless "opinions". OG