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URL:  https://boards.fool.com/my-5-finalists-2-cisco-10204955.aspx

Subject:  My 5 Finalists -- #2 Cisco Date:  6/13/1998  1:37 AM
Author:  MrShihTzu Number:  211 of 8329

As promised in tonight's report, here are a few sentences on each of my five finalists.

Cisco -- According to my calculations from the most recent 10Q, they pass all the numerical CK criteria, other than the leveraged flow ratio (which they just miss).

Gross Margin -- 65.4%
Net Margin -- 14.1%
Leveraged Flow -- 1.31
Unleveraged Flow -- 1.31
Cash/Debt -- NO Long-Term Debt

They do fall short on consumer mindshare as consumers generally do not buy their products. But, they seem to have great mindshare among their core customers. Plus, everything I read makes it seem as if they are really becoming the dominant player in the networking industry.

The stock's performance over the years certainly speaks for itself.

Personally, I like the direction as well. EPS has grown by more than 65% over the last 5 years and is expected to grow just under 30% over the next 5.

Biggest shortcomings of this one is that they have a somewhat "heavy" business, and they turn their receivables over a little more slowly than I like to see (but this has been improving).

Phil


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