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

To: DownSouth who wrote (22532)	2/12/1999 11:31:00 PM
From: Brian Malloy	Read Replies (2) \| Respond to of 77397

People with superficial understanding of companies shouldn't throw stones, saying the following about DELL indicates that you didn't even know what you used to own: "no differentiators except price, ease of ordering, and service." But then again, how can you understand what you don't know.

To: DownSouth who wrote (22532)	2/13/1999 2:21:00 AM
From: jach	Read Replies (1) \| Respond to of 77397

<CSCO has 85% of its market and its boxes cannot be replaced by a competitor.> CSCO mkt share is eroding fast. AOL just installed Foundry Layer 3/4 switch/routers. This is a big lost for traditional router vendors, especially for CSCO. CSCO boxes can be easily replaced as one can see just from this AOL example alone. In fact this type of replacement is easy because IP is now becoming the prevalent protocol, instead of the need to support multi-protocol. In the interior IP network, OSPF is an IETF standard where any routers can inter-operate with another supporting OSPF. For exterior routing information exchange, BGP is another standard. The role of Router as a layer 3 forwarding/routing device is becoming blurred by the layer2/3/4 optimized switch/routers. Simply put, Routers are being eaten up by these optimized switch/routers with extremely fast switching in Silicon. imo.

To: DownSouth who wrote (22532)	2/13/1999 3:28:00 AM
From: jach	Read Replies (2) \| Respond to of 77397

Another link showing CSCO has many competitors and not uncommon to see that the competitions were being selected instead of CSCO. That's why the big brokerage houses finally are now starting to say that competition is getting very stiff and margins will be coming down. The big risk with CSCO is that its stock value is built on the basis of astronomically large net margin of around 30%. As this net margin comes down, so will be the stock price. The big guys, LU and NT can compete comfortably having 10% net margin because their stock price is based on the 10% net margin now. techweb.com