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

To: The Phoenix who wrote (19129)	11/8/1998 12:55:00 PM
From: Dennis	Read Replies (1) \| Respond to of 77397

Gary, thanks . I am thinking long term.......so double by 12/99 is just fine with me. Good Luck

To: The Phoenix who wrote (19129)	11/8/1998 3:27:00 PM
From: LindyBill	Respond to of 77397

I can tell you with confidence though that CISCO will double by 12/99. Gary, from your lips to God's ear! But I wonder if a double that will hold over the next 12 months is realistic, with projected 35% growth? I can't see the market rewarding Cisco with a PE much higher than it now that holds, except during a short term Bull runup.

To: The Phoenix who wrote (19129)	11/8/1998 8:29:00 PM
From: jhg_in_kc	Read Replies (2) \| Respond to of 77397

Gary, OT, what do you think of ITWO?/<EOM>

To: The Phoenix who wrote (19129)	11/8/1998 8:42:00 PM
From: Tulvio Durand	Read Replies (2) \| Respond to of 77397

Gary, as LB says, how can you confidently predict a double with 35% growth? From historical records, CSCO's PE range is 20-to-80. So assuming 35% growth and a maximum PE of 80 would produce a stock price of 135, or the double. An average PE of 50 would give a price of 84 -- a more likely scenario. Or if we simply upped today's price by 35% we would get $90/share -- also a likely scenario. The PE of 80, which occurred during accelerating earnings, is not likely to happen again. Tulvio