Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Anthony who wrote (19659)	12/2/1998 2:39:00 PM
From: LindyBill	Respond to of 77400

I am talking about short term like where CSCO will be in a month or two with relative of where the general market is heading. I don't think Cisco will be at a PE higher than present, and hold it for the next quarter. It may hold 85 by march. Over the next year we will hit and hold 100, it may go higher, but I believe it will back off if it does

To: Anthony who wrote (19659)	12/2/1998 4:25:00 PM
From: Hagar	Read Replies (3) \| Respond to of 77400

To all, Because its so quiet here and in light of Cisco's latest acquisition, I have an item for discussion. I preface this by saying I am fairly ignorant with respect to the issue. I read some time ago a set of articles (don't have a reference) questioning the reported earnings of companies that take a lot of charges, specific references were Lucent and Cisco. First, stock prices through some function reflect past, present, future earnings of a company. Second, charges taken against earnings through acquisitions for R&D in progress knowingly dilute the earnings. Third, earnings received in the future from that R&D are reported unencumbered by the charges. Has Cisco mastered this? Wall street has come to expect these charges routinely and does not penalize the company for taking them. Do the unencumbered earnings mask the real health of the acquisition? Does consistently doing this allow Cisco to keep the earnings picture smooth and predictable? If this is a "little smoke and mirrors" does the true bill ever come due? I only pose the questions, I have no bias for or against Cisco. I'm just an engineer trying to carve out a piece of the pie.