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

To: jach who wrote (22197)	2/8/1999 9:39:00 AM
From: Zoltan!	Read Replies (1) \| Respond to of 77397

So what? GM easily outsells Microsoft. As I said, while most people have brains you have none of that. You merely have a mouth and a keyboard. Everything I stated about IBM is true and verifiable. IBM is and has been shrinking itself for well over a decade. Cisco is continuing its record-making expansion as trends reinforce its growth and dominance. As I stated, valuation is based on performance and expectancy. As always, your pitiful views cannot withstand analysis.

To: jach who wrote (22197)	2/8/1999 10:45:00 AM
From: RetiredNow	Respond to of 77397

jach, interesting comparison. IBM surely has done well in the last couple of years as a company and a stock, and they have huge earnings, no doubt. Looks like it has been a good investment for you. However, I believe Cisco will easily outpace IBM's growth rate over the next few years, and that is the primary reason for the disparity in valuation. It's just the law of large numbers. The higher the revenue base, the harder it is to sustain a given growth percentage. Also, sure Cisco only has revenues annualized at $11.32B right now. However, we all expect Cisco to reach $42B or so revenues within 5 years. That's a 30% growth rate. Can IBM also sustain a 30% growth rate? Not very likely given how large their revenue base is. Remember that Cisco is in a market that is estimated to be $350B. That market include data networking equipment as well as old world telecommunications equipment. Since everyone know that the two are converging and that Cisco is the undisputed leader in data networking, guess who will get the lions share? Cisco. P.S. I do agree with you that Cisco's stock price has surged ahead of the fundamentals. But I don't know how likely a retreat below $100 is.