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

To: Lynn who wrote (22617)	2/14/1999 12:25:00 PM
From: Aitch	Read Replies (1) \| Respond to of 77397

OT Hi Lynn, Been lurking awhile here on advise from DS. So you also hold CSCO? I got in recently and am trying to get the feel for the stock... Have a nice long weekend, I am at work today and tomorrow, my fault for living/working in the ME... H

To: Lynn who wrote (22617)	2/14/1999 12:27:00 PM
From: mauser96	Respond to of 77397

It's more a feeling than based on a long list of facts. I think they have spent too much for acquisitions of dubious value and have not paid enough attention to their own business model. Compaq capital costs 15.6%, and return on that capital is 30.6% . Now this is a good figure but miles behind Dell. Nevertheless Compaq sticks to an inferior business model. Their present efforts in this direction are half hearted. The CEO seems a bit too Tuetonic to me, sometimes having the "this is what we give you and you will like it" attitude. In the past the products themselves are almost never more than mid performance,usually lagging behind Dell in PC magazine tests.The PC boxmakers are operating in a wonderful expanding market which covers up a lot of mistakes, but this won't last forever. When it ends the dominant one will be the most efficient and that's Dell, beyond question. Is Dell worth it's present price? Your guess is as good as mine.. Just my 2 cents worth, you probably know more about Compaq than I do. I agree with Mr. Buffett that the difference between cost and return on capital, free cash flow, and length of competitive advantage are what determines stock prices in the long run. Concerning Cisco, it's my biggest investment. I wonder if Mr. Clinton is feeling my pain? <<g>>