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

To: KYA27 who wrote (22724)	2/17/1999 11:26:00 AM
From: ed	Read Replies (3) \| Respond to of 77397

Lu just announced a 2:1 stock split. Split signaled the commitment of the managers to the continuous growth of company's business in the future . At this point , I see LU is a better choice than CSCO. Some manager team had lost confidence about the future of its own company, so what can the investors do if even the managers lost confidence , of course, sell , in big time !!!!!!!!!!

To: KYA27 who wrote (22724)	2/17/1999 12:08:00 PM
From: The Phoenix	Respond to of 77397

KYA27, I think you take a very sane approach and agree that CSCO will continue to see competitions...they have for years and have done well in that environment. A few things to consider however: - Barriers to entry are much higher in this market (vs. the PC market) - CSCO is very broadly positioned thus smoothing bumps that might occur due to competitive entry in any one market - CSCO continues to innovate and set standards - in effect creating additional barriers to entry (competitive hurdles) as time goes by - CSCO continues to penetrate the infrastructure and consumer devices with Csco network software - much harder to replace with a competitive solution. So, although in principle I agree that like DELL, CSCO will continue to see competition but unlike DELL CSCO's compeititors will have a much tougher time at catching up and will be ineffective (in the short term) at having a material effect on CSCO's performance overall. OG

To: KYA27 who wrote (22724)	2/17/1999 2:44:00 PM
From: DownSouth	Read Replies (5) \| Respond to of 77397

Look what happen to Dell and you see a dead ringer in CSCO. Dell and Cisco are in two different markets selling two different products. (Network infrastructure versus PCs) Dell has no intellectual property. Cisco has many patents. Dell's business model is based on management of capital through innovative order processing, manufacturing, and distribution. Cisco's business model is based on innovating technology, standards setting, and large product margins. Competing with Dell requires matching their business model. Competing with Cisco requires changing industry standards, inventing new technologies. Dead ringer?