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

To: RetiredNow who wrote (22021)	2/4/1999 8:28:00 PM
From: JC Reddy	Read Replies (1) \| Respond to of 77397

Annualized growth rate since FYE '96 is 17%. With earnings of $0.84/share, trailing P/E ratio is 125. P/E of 125 for growth rate of 17%. From your own figures, the growth appears to be slowing (although this is a small sample). Does it concern you? Thanks for that info. Is there any place I can get it from?

To: RetiredNow who wrote (22021)	2/4/1999 8:54:00 PM
From: Ibexx	Respond to of 77397

Mindmeld and CSCO investors, Larry Wachtel of Prudential thinks Wall street was pouting partly because Chambers didn't give us a blowout yesterday. Message 7667363 Ibexx

To: RetiredNow who wrote (22021)	2/5/1999 6:46:00 AM
From: Zoltan!	Respond to of 77397

Cisco robust - but hurt by stock non-split, LU overvalued: Tech stock selling pressure mounts, 3Com hit By Franklin Paul NEW YORK, Feb 4 (Reuters) - Selling pressure in technology shares mounted and indices tumbled Thursday as the high-flying networking and internet sectors succumbed to jitters over corporate growth prospects and rich share valuations. 3Com Corp. (Nasdaq:COMS - news) led the way down amid worries its third quarter sales would miss expectations. Two top makers of the equipment that powers global telecommunications, Cisco Systems Inc. (Nasdaq:CSCO - news) and Lucent Technologies Inc. (NYSE:LU - news), also were hit by stiff selling even as those companies posted solid earnings. The group's weakness mirrored broad selling pressure among tech stocks on Thursday. But their steady fall-off since Tuesday, when Cisco -- the No. 1 computer-networking company -- reported stronger than expected earnings, suggested to analysts that investors had started to question the wisdom of bidding up a group that already sported extremely high valuations. In 3Com's case, valuations have already abruptly retreated. The shares fell $3.19 to $34.19 on Thursday, making it the second most heavily traded issue on Nasdaq. 3Com is off sharply from its closing price of $47.25 on Monday. Prudential Securities analyst Luke Szymczak said he thinks 3Com may miss third quarter revenue estimates, due to a slow-down in sales for the first two months of the period. He cut his revenue estimate by $60 million to $1.5 billion, and shaved his earnings view to 33 cents a share from 36 cents. ''We believe that 3Com has likely only reached half of its sales target for the quarter at this point,'' he said. In December, 3Com executives cautioned that its third quarter -- running from December through February -- is historically the slowest of the year, and that revenue would likely be down slightly or flat with the second quarter. A 3Com spokeswoman was not immediately available to comment on the analyst's comment. 3Com is expected to report around the third week of March. Lucent's shares dropped to $104.875, down $5.125 from Wednesday's close and down about 8 percent from a week ago. Cisco's shares fell $4.124 to $107, down from $115 on Monday. On Tuesday, Cisco said it second quarter profits rose 33 percent and topped analyst forecasts, while telecommunications revenue surged by more than 50 percent. Analysts said investors were disappointed that Cisco did not declare a stock split, and that valuation was a lingering concern, but noted that the company remains healthy. ''While valuation may appear extended, Cisco remains the key beneficiary of internet infrastructure growth and transition to data-centric telecomunications networks,'' said Lehman analyst Tim Luke in a research brief. Lehman's Steven Levy, spurred by valuation concerns, insisted that Lucent, in contrast, was too pricey at 40-to-50 times 1999 earnings estimates, and renewed his neutral rating. ''Simply put, we do not think that investors should be paying a price-earnings multiple of forward 12 months earnings ... that significantly exceeds its forecasted sustainable earnings growth rate,'' he said. Lucent's rising accounts receivable levels at the end of the December quarter reinforce his concerns about valuation, he said. Other telecom equipment companies slumped on Thursday, including Ascend Communications Inc. (Nasdaq:ASND - news), off $5.06 to $78.81, and Tellabs Inc. (Nasdaq:TLAB - news), down 12.5 cents to $82.125. biz.yahoo.com