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

To: Frank A. Coluccio who wrote (22973)	2/22/1999 9:52:00 AM
From: Chris Carlson	Read Replies (1) \| Respond to of 77400

Mr. Coluccio and Thread, Apologies for not being directly on topic to your post, Frank, but I thought this was of note. This is from the end of one of Jubak's article's on MS' moneycentral site. He was writing about Dell's recent 'problems'. To wit, and for what it's worth: "New Developments on Past Columns I'll take Cisco's word for it I've been taking a hard look at Cisco Systems to see if there are any signs that it's headed for a tumble like Dell Computer. I can't find any. Sales at Cisco have actually grown at a faster rate in each of the last two quarters. Revenues grew by 40% in the company's fiscal second quarter (the period ended Jan. 23), by 38% in the first quarter, and by 31% in the fourth quarter of the last fiscal year. After backing out charges for acquisitions, I calculate that Cisco shows earnings per share of $1.90 for the last four quarters. That translates to a 50.7 P/E ratio at the recent price of $96.25 a share. That's about the same multiple that the stock sported the last two times I calculated a target price. Using that multiple and what I think is a conservative 26% earnings growth rate, I project $2.39 in earnings per share for February 2000 and a target price of $121 a share for February 2000. That's a potential 26% return. Enough to keep Cisco in Jubak's Picks for a while longer." What's of note to me is his calculation of earnings w/o charges, $1.90/share, and the subsequent p/e, 50.7. Chris