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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: JRH who wrote (1792)	5/8/1999 2:40:00 AM
From: Mike Buckley	Respond to of 54805

Justin, don't you think that CSCO is already fairly valued for....about two years from now? You really hit my hot button with that one! Thanks! One of the things I find interesting is the theme among various threads that any time a stock of a gorilla doesn' advance, or even pulls back, the assumption is that it is undervalued. I see very, very little valuation done to back up that sort of thinking and the book helps contribute to the problem by providing no quantitative valuations. so as long as it doesn't lose 50% of its value (scary as it is, it isn't impossible) Twice in the last three years Cisco pulled back 40%. You're right that a 50% pullback is indeed very possible, especially in this volatile market. --Mike Buckley

To: JRH who wrote (1792)	5/8/1999 10:20:00 AM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

>>don't you think that CSCO is already fairly valued for....about two years from now? No way, Justin. I think they are fairly valued for today, but the market looks at the future. Last time I looked, the number of internet users was still doubling every 100 days, e-commerce is booming but still in its infancy, and the brightest minds in the world are being drawn to this compelling opportunity in droves. The Internet isn't another CB radio that will blossom briefly and then fade; it had become a basic thread in the fabric of the modern age. So I ask you, what is a fair valuation for the Master Builder of the Information Super Highway? Frank