Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Alok Sinha who wrote (25435)	5/11/1999 8:20:00 PM
From: 16yearcycle	Read Replies (2) \| Respond to of 77399

Ok, here is my twice yearly defense of the pe. The q was .38, right? So they will earn .38, .41, .44, and .48 going forward. This is 1.71, which is a forward pe of 65, not 80-120. Revenues are growing at 40% plus. So csco is getting a slight premium to the growth rate, while positioned as the leading company in their market presently, and their market will not be saturated for many years. If anyone thinks it is too high here, fine. Wait for the next brutal sell off. The price was 41 at the low in October, which was a pe of about 25 based on this quarters run rate.

To: Alok Sinha who wrote (25435)	5/11/1999 9:00:00 PM
From: Jeffrey D	Respond to of 77399

Alok:<<I currently do not have a position, but have been long CSCO for a long time (and been rewarded handsomely, and I do believe it is a great company. I may get back in, not tomorrow but sometime during the summer when the price is about 20 points lower.>> Alok, I agree with you, CSCO just might be 20 points lower than it is now by this summer........ Of course, we ARE talking post 2 for 1 split numbers aren't we? <ggg> Jeff

To: Alok Sinha who wrote (25435)	5/11/1999 9:16:00 PM
From: Martin Milani	Read Replies (1) \| Respond to of 77399

All I was saying that the recent trend with most techs( going up before report release and going down right after) lately does not always repeat itself. The PE ratio argument does not hold and has not hold here for over 4 years now...! can you explain yhoo, amzn, ebay, onsl, insp, aweb, lycs,..etc in terms of PEs...? come on get real CISCO is seen as an internet company on wall street and you are right ..IBM is not!

To: Alok Sinha who wrote (25435)	5/11/1999 9:32:00 PM
From: Tulvio Durand	Read Replies (1) \| Respond to of 77399

Comparison of CSCO to IBM is not as absurd as you suggest. CSCO and IBM have approx. same PEG of 2.7. However CSCO's projected 5yr growth rate, 29.2%, is nearly 2.5 times that of IBM's 11.7%. Time to double your original investment is 2.5 yrs with CSCO compared to 6.2 yrs with IBM. Your opinion that investors will be less satisfied with CSCO's earnings compared to IBM's is absurd. I base my calculations on data: biz.yahoo.com biz.yahoo.com Tulvio