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

To: JC Reddy who wrote (20131)	12/27/1998 12:19:00 AM
From: jach	Respond to of 77400

Agreed. Spent some time and did comparison on COMS and CSCO. Based on the numbers COMS has great potential for upside. The key point for COMS to become a real gem is to show consistency. Very interesting point is that COMS next year eps is 1.98. CSCO next year eps is 1.81. COMS mkt cap is only 16.5B, CSCO mkt cap is 148.7B. That is almost 10 times of COMS. The revenue is about the same, and COMS EPS is estimated higher than CSCO for next year. So, imo, COMS has great potential for its stock price to appreciate. COMS also is a real bargain as we can see compared to CSCO. COMS is a very tempting target for acquisition. If the mkt now believes in COMS predictable growth and gives the same valuation as CSCO, COMS stock price will be at about 300$. And, imo, looking at the charts, CSCO is way overvalued. stocksheet.com stocksheet.com

To: JC Reddy who wrote (20131)	12/27/1998 9:32:00 AM
From: LindyBill	Read Replies (1) \| Respond to of 77400

A Question about CSCO valuation. Yeah, this stock has shown it can drop a lot! The question you gotta ask yourself is: do you want to ride it out? I rode it out last summer, and did fine. I tried to out guess it in November, and broke even. There has been a lot of comment on this thread from people who have guessed and lost. If we got a poor earnings report, I would use my "Russian Army" approach and reduce my holding while reinforcing some other holding. For instance, I increased my MSFT and reduced my DELL recently. I will sell and run only if the basic story changed. I will hold on a short slide. I know from experience that I will be tempted to try to out guess a protracted slide, like the one last summer. CSCO is at $94/share which makes current P/E of 100 Hey, J.C.Reddy, this is not a shot at you, but a general comment on PE ratios. You are quoting a 100 PE at 94 a share, which means you are using a figure of 94 cents a year for earnings. "The Street.com" says it is a PE of 86.9 at a price of 96.5, which works out to earnings of 1.11 earnings a year. I used a PE I got from "The street.com" on the Microsoft thread the other day, and got called on it by Ibeex, who had a much higher figure. I have seen quotes the last few days on AOL ranging from 380 to 420. I would like to use a "forward" PE figure of one year, which would mean 00 to me, and that is what you used. I am sure we will never get a consensus on this, but I think I will at least give my source from now on. (That will at least keep Ibeex off my butt!)