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

To: jach who wrote (24260)	4/9/1999 10:03:00 AM
From: drew myers	Read Replies (1) \| Respond to of 77397

circular reasoning - please don't attempt to make a point by referring me to a post where you stated IBM was a "gorilla"; that proves nothing. Using the popular multiplier model: V(e) = P/e * (E(e)) CSCO Vo = 117/1.471.83= a fair stock value of $145 IBM Vo = 187/7.52 8.63 = a fair stock value of $214 Csco is at 80% of its stock value using this model. IBM is at 87% of its stock value using this model. CSCO has a slightly higher Beta (1.33 versus 1.25, but the return cited below certainly justifies the risk). When combined with earnings consensus of 30% annually over the next five years for CSCO; and a paltry 11.4% annual growth for IBM over the next five years....CSCO is the obvious choice for an investor today wanting to make an investment. Write it down and check back with me in three years, four years, or five years.