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: Catcher who wrote (20153)	12/27/1998 1:48:00 PM
From: LindyBill	Read Replies (1) \| Respond to of 77400

Interesting paragraph from Motley Fool: 6. Value Freaks Look, cash sells at 30.8 times earnings (that's a yield of 5% after 35% taxes. That's 1/(0.05*0.65). Quit with the "historical P/E on the S&P 500" yick-yack. Look, when a company like Cisco Systems (Nasdaq:CSCO - news) makes equipment and software that facilitates the doubling in Internet traffic every 100 days, equating its fair P/E with its EPS growth rate over the next year is pretty much braindead. Cisco should sell for the same multiple as a money market fund when traffic over the Internet increases by a factor of more than 12 every year? I DON'T THINK SO.

To: Catcher who wrote (20153)	12/27/1998 5:03:00 PM
From: PMS Witch	Respond to of 77400

"Your opinion please...once AOL, yahoo excite, etc. nosedive what will become of Cicso?" Nobody knows for sure, but here's a guess. The 'Net rockets' are acting like the bio-tech stocks did earlier this decade where anything 'bio' was going through the roof. Some prick broke the bubble and the party ended. Those companies which had both products and profits survived while the companies trading on promise and stories didn't. Through this, traditional drug companies made their shareholders happy. Companies like CSCO and MSFT are well established profit generators. When 'Latest Great Thing' comes back down to earth, people are going to look in the mirror and ask themselves "How could I have been so foolish?" while they consider where to invest what's left of their savings. The rewards CSCO holders have received over the years will look pretty good to them and that's were they'll want to be. Cream rises to the top, PW.