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

To: Howard Bennett who wrote (25591)	5/12/1999 9:49:00 PM
From: JB	Read Replies (1) \| Respond to of 77397

HB, whats the matter, can't stand success??? JB

To: Howard Bennett who wrote (25591)	5/13/1999 1:28:00 AM
From: Jacob Snyder	Read Replies (1) \| Respond to of 77397

re: 113 PE on CSCO: how do you calculate that?

To: Howard Bennett who wrote (25591)	5/13/1999 7:54:00 PM
From: Tulvio Durand	Respond to of 77397

Trailing 4Q PE is 84 (not 113) based on today's closing price, 118, and trailing 4Q earnings of 1.40. Compared to today's market darling, IBM, CSCO's projected 5 yr growth rate 29% is more than twice IBM's 11.7% (per Yahoo). Since IBM's trailing 4Q PE is 35, its PEG is 3.1 -- same as CSCO's PEG, so CSCO's price is not a lot compared to IBM. Based on projected growth rates and constant PEs, the time-to-double your $ is 2.5 yrs for CSCO vs 6.2 yrs for IBM. [CSCO's price has doubled at 15 months, on average, over the last five years]. Message 9495856 IBM was up 9% today because IBM's Gerstner said his company is Internet-centric and 25% of 1998 revenue came from e-commerce. CSCO IS the Internet and has higher % e-commerce than IBM. If everyone loved IBM today, why are you surprised that a lot us love CSCO? Tulvio