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

To: Mighty Mizzou who wrote (21343)	1/29/1999 5:29:00 PM
From: Howard Feinstein	Read Replies (1) \| Respond to of 77400

Not much to say here but..........CSCO IS ONE HELL OF A STOCK TO OWN!!!! All have a great weekend! Howie

To: Mighty Mizzou who wrote (21343)	1/29/1999 9:41:00 PM
From: Zoltan!	Respond to of 77400

Economist Magazine: Internet Stock Bubble Waiting To Burst - Rpt Newstraders - January 29, 1999 15:12 (NewsTraders.com)-- The seemingly endless rally behind Internet-related stocks will eventually end because there are just too many ominous factors waiting to jolt the market back to reality, according to the Economist Magazine. Although the magazine didn't estimate when a "correction" would occur, it provided a number of issues that might lead to a shakeup. Highlights: - Troubling valuations: Amazon.com's (AMZN) market capitalization is greater than Texaco (TX) or all of the bookstores in the U.S., while Yahoo (YHOO) is valued greater than Boeing (BA). - Technology consultant Forrester research predicts that online retail sales in the U.S. will reach $108 billion in 2003, however, that robust figure will only account for 5% of total retail sales. - Amazon may have a dominant brand name and winning business model, but as competitors attack its dominance and begin to undercut it on price, margins on sales will be severely squeezed. When consumers begin using "bots" -- search engines that seek out the cheapest price among a number of e-tailers -- dominant players like Amazon will feel even more pricing pressure. "Amazon could yet become a $10 billion business with the profits of a corner store," says the Economist. - Much of America Online's (AOL) income is derived from subscriptions, but what happens when Internet access becomes a free commodity? The company might also be denied access to broadband cable networks, which are likely to emerge as the most popular providers for high-speed access in the near future. - None of the popular Web portals have tried to distinguish themselves by appealing to a defined group, like most traditional media. They eventually might have to make that transition in order to grab a loyal fan base, and thus profits, from fickle Internet surfers. - Thin floats -- the actual amount of shares available for trading -- has created further volatility on Internet stocks. - Short sellers who have been burned have thrown fuel on the fire because they've had to buy back positions at higher prices. - If a sell-off happens, day traders could get smacked if online brokerages can't handle the large volume of trades and panic might ensue. - The argument that many of the Web's monster stocks -- such as AOL, Yahoo, Amazon and eBay (EBAY) -- are the next Microsoft's (MSFT) of the Internet and thus deserve the stratospheric valuations is somewhat troubling because none of them have a dominant proprietary technology like the software giant enjoys. "It is hard for Internet companies to create the technological lock-in that has made the Windows operating system so dominant," the Economist says. - The real winners and safer companies to bet on are ones that have built the Internet and serve those companies mentioned above. This includes Cisco Systems (CSCO), Microsoft, Oracle (ORCL), Sun Microsystems (SUNW), IBM (IBM), Lucent (LU) and even MCI WorldCom (WCOM) and ATT (T).

To: Mighty Mizzou who wrote (21343)	1/29/1999 9:43:00 PM
From: Zoltan!	Read Replies (1) \| Respond to of 77400

Economist Magazine: Internet Stock Bubble Waiting To Burst - Rpt Newstraders - January 29, 1999 15:12 (NewsTraders.com)-- The seemingly endless rally behind Internet-related stocks will eventually end because there are just too many ominous factors waiting to jolt the market back to reality, according to the Economist Magazine. Although the magazine didn't estimate when a "correction" would occur, it provided a number of issues that might lead to a shakeup. Highlights: - Troubling valuations: Amazon.com's (AMZN) market capitalization is greater than Texaco (TX) or all of the bookstores in the U.S., while Yahoo (YHOO) is valued greater than Boeing (BA). - Technology consultant Forrester research predicts that online retail sales in the U.S. will reach $108 billion in 2003, however, that robust figure will only account for 5% of total retail sales. - Amazon may have a dominant brand name and winning business model, but as competitors attack its dominance and begin to undercut it on price, margins on sales will be severely squeezed. When consumers begin using "bots" -- search engines that seek out the cheapest price among a number of e-tailers -- dominant players like Amazon will feel even more pricing pressure. "Amazon could yet become a $10 billion business with the profits of a corner store," says the Economist. - Much of America Online's (AOL) income is derived from subscriptions, but what happens when Internet access becomes a free commodity? The company might also be denied access to broadband cable networks, which are likely to emerge as the most popular providers for high-speed access in the near future. - None of the popular Web portals have tried to distinguish themselves by appealing to a defined group, like most traditional media. They eventually might have to make that transition in order to grab a loyal fan base, and thus profits, from fickle Internet surfers. - Thin floats -- the actual amount of shares available for trading -- has created further volatility on Internet stocks. - Short sellers who have been burned have thrown fuel on the fire because they've had to buy back positions at higher prices. - If a sell-off happens, day traders could get smacked if online brokerages can't handle the large volume of trades and panic might ensue. - The argument that many of the Web's monster stocks -- such as AOL, Yahoo, Amazon and eBay (EBAY) -- are the next Microsoft's (MSFT) of the Internet and thus deserve the stratospheric valuations is somewhat troubling because none of them have a dominant proprietary technology like the software giant enjoys. "It is hard for Internet companies to create the technological lock-in that has made the Windows operating system so dominant," the Economist says. - The real winners and safer companies to bet on are ones that have built the Internet and serve those companies mentioned above. This includes Cisco Systems (CSCO), Microsoft, Oracle (ORCL), Sun Microsystems (SUNW), IBM (IBM), Lucent (LU) and even MCI WorldCom (WCOM) and ATT (T). newsalert.com

To: Mighty Mizzou who wrote (21343)	1/29/1999 9:51:00 PM
From: Zoltan!	Read Replies (2) \| Respond to of 77400

Cisco Systems Inc. Dow Jones Newswires -- January 29, 1999 Cisco Seen Delivering 2Q Earns In Line With 35c/Shr View By Joelle Tessler NEW YORK (Dow Jones)--Analysts aren't expecting any surprises from computer networking industry giant Cisco Systems Inc. (CSCO) when it reports its fiscal second-quarter results after the market closes Tuesday. Wall Street's consensus estimate for the quarter, which ends in January, is an earnings number of 35 cents a share, up from a split-adjusted 29 cents a year earlier. Given Cisco's history of delivering results that are in line with expectations - as well as its ability to manage its numbers since it holds a leading position in the networking equipment industry - most analysts don't expect the company to report a number that is any higher than 36 cents a share. "They have so much flexibility to smooth and manage the numbers," said Nutmeg Securities analyst Andy Schopick. Donaldson Lufkin & Jenrette Securities analyst Stephen Koffler projects Cisco's second-quarter revenue will come in at $2.75 billion, up from $2.59 billion in the first quarter and $2.02 billion in the second quarter of last year. As the largest of the companies that make equipment used to connect computers to form networks, including the Internet, Cisco has products in almost every segment of the business. The company dominates the router business and is a leader in the market for local area networking, or LAN, products - which go to enterprise, or corporate, customers. Even though growth in the LAN market has slowed from levels of a year or two ago, Schopick explained that Cisco is doing well in this area since it continues to capture market share from its competitors. Although there are concerns that corporate customers could cut back substantially on spending on networking equipment in 1999 as they feel the impact of the economic slowdown in many emerging markets, most analysts say the enterprise business appears to be faring well right now. Koffler added that corporate customers don't appear to be diverting resources from networking to Year-2000 spending, although that could still happen later in the year. Meanwhile, Cisco continues to expand its presence in the fast-growing wide area networking, or WAN, market - which is made up of telecommunications companies and Internet service providers. Koffler expects Cisco to offer an optimistic outlook for a number of new products, including its Catalyst 8000 family of layer 3 switches. A high-end backbone version of the product has been widely available since January, he said. In addition, Cisco is shipping a number of new asynchronous transfer mode, or ATM, switches for the service provider market, including the TGX 8750. Shares of Cisco set a 52-week high of 110 3/8 on Friday. -Joelle Tessler; 201 938-5285 wsj.com