All - Cisco is a great company. It has one of the best developed business models in the world. Their products afford a well-rounded feature set that is first rate. ARE YOU INSANE!!! ;) Let's see. CSCO is trading at a P/E of just over 45. Companies normally trade in the area of 30, and WorldCom, etc., are at 10-15. Thus, Cisco is overvalued by 50%, and historically would price at $12/share if they were a normal company. OK, they're not, so a slight premium would be warranted (where that is between $12-18/share is unknown, but we'd likely be near the top of the range). Further, Cisco is recording P/E (price/earnings) on last quarters numbers, which could be 30% BETTER than this quarters. A lowering of up to 30% could warrant a price range of $10-14/share to hold the same P/E ratio. Since the next two quarters appear down, and lowering is more likely, you would view this as a bargin why? ;) In addition, Cisco is the largest holding of most money market funds. As the price increases it would be likely that they will sell to diversify. Look, I like the company. I think very long term they will be an IBM or a Microsoft. But short term, with any stock, don't allow a lower price than yesterday to be a measure of a bargin. If I believed that any/all of us would save Cisco with our thousand share buys I'd likely be a bit more positive, but since the loss will hurt us MUCH more than the aggrigate company or economy, please save your capital and do the analysis before investing! Kidding about the insane thing BTW. Now, for a really good investment, the Bank of Rob is taking deposits, cash only please! --- ItsMe <[EMAIL PROTECTED]> wrote: > Myself and a few others are buying. Same story as > yourself couldn't afford > it before. As for going to hell in a hand basket; if > Cisco went down the > tubes, there would be many other things you would be > worried about then the > money you would be investing with now. (i.e. > radiation poising from the > Nuclear War :-) > > just my opinion > > "Natasha" <[EMAIL PROTECTED]> wrote in message > [EMAIL PROTECTED]">news:[EMAIL PROTECTED]... > > Hi gang, this is a little off topic but... > > I've been watching the stock price of Cisco drop > from where it was to > > where it is now, and have been agonizing over the > fact that I can > > actually afford some. > > > > Reading the Analyst Consensus on various sites and > Cnbc it seems like > > we're going to hell in a hand basket. > > > > The insight that I need is, > > Is it slowing down as bad as they tell us? > > What is the life span of the average router, > warranty? > > How often are routers, switches, etc. replaced? > > Is Cisco a bad investment right now? > > You folks are out in the trenches so any help or > insight that you can > > offer is a help. > > Thanks > > -- > > Natasha Flazynski > > http://www.ciscobot.com > > My Cisco information site. > > http://www.botbuilders.com > > Artificial Intelligence and Linux development > > > > _________________________________ > > FAQ, list archives, and subscription info: > http://www.groupstudy.com/list/cisco.html > > Report misconduct and Nondisclosure violations to > [EMAIL PROTECTED] > > > > > _________________________________ > FAQ, list archives, and subscription info: > http://www.groupstudy.com/list/cisco.html > Report misconduct and Nondisclosure violations to [EMAIL PROTECTED] ===== Robert Padjen __________________________________________________ Do You Yahoo!? Get email at your own domain with Yahoo! Mail. http://personal.mail.yahoo.com/ _________________________________ FAQ, list archives, and subscription info: http://www.groupstudy.com/list/cisco.html Report misconduct and Nondisclosure violations to [EMAIL PROTECTED]
