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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (38496)	12/7/1998 10:52:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

MM, there is a small company named Lucent invading their turf. Just like when Intel invaded Atmel's flash memory niche, that does not bode well for margins at either co. Eps growth is already less than half the pe ratio and the growth rate is declining while the pe ratio keeps going up. I call that a recipe for disaster. As the margins come down, the networkers are going to discover that they are as invulnerable as the SRAM and graphics chip cos. Most of them are already priced for slower growth. Cisco is priced for a trip to the Moon. So, I am looking for the first big contract they lose to Lucent. That is when I buy puts on Lucent. Then I look for the first big contract where they beat Lucent. That is when I buy puts on Cisco. MB