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

To: Shroder Wertheim (Hijacked) who wrote (22809)	2/18/1999 11:33:00 AM
From: Chris Carlson	Respond to of 77400

Mr. Wertheim, re: "The bottom line is its earning per share this year more or less the same as 3COM, yet it stock price is 3 times. I agree Cisco should have much higher PE than 3COM, but not at 300%. If you look at the last two quarters report, Cisco and 3COM growth rate are almost neck to neck." I think the bottom line is that Cisco has had this growth for much longer than two quarter and the perception is that it will continue to have this growth for more than two quarters going forward. I am much more interested in where this stock will be in 4, 8 ,12 quarters. I bought back in spring 97 when the stock tanked because Cisco missed the whisper number by a penny. Cisco was probably overvalued then, before it went down, as well. Now it is going down because they didn't split their stock, Dell's revenues aren't as high as the street wanted, and overall profit-taking. But to compare CSCO's valuation to COMS (and to make a judgement about over or under-valuation) because of the last two quarters doesn't seem sound to me. I think Cisco is valued more than COMS because of it's consistent long-term growth, not the last 6 months. Chris