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

To: Tulvio Durand who wrote (18620)	10/31/1998 7:51:00 AM
From: John Carragher	Read Replies (1) \| Respond to of 77397

Barron's Even as small-cap stocks increasingly beckon buyers, the Big Money men and women continue to voice concern about the sky-high valuations of many larger issues, echoing a theme from previous polls. "Given the amount of 401(k) money flowing into the market, it is easier for mutual-fund managers to buy the big stocks," says Greg Garner, research director and a portfolio manager at Noroian Capital Management in San Francisco. "But how much of a premium to a company's underlying growth rate can they justify paying? Cisco Systems, for one, is growing by 20%-30% a year, and has a price-to-earnings multiple twice that growth rate. Valuations could bounce around for a while, but it's hard to see why they'll grow even more."