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No. of Recommendations: 1
I would say that because Cisco is so dramatically losing market share in its key
market segment that its competitive advantage period (CAP) will soon be discounted
by analysts. If this happens, its market capitalization may be in for a big reduction.
(The Fault Line talks abuot tech companies whose dominance is no longer assured
taking overnight hits of 50% reduction in market cap.)


My take is that the first serious failure to hit earnings targets will be the
start of a sell-off. I don't know that is going to happen any time soon. Cisco
is losing market share primarily because the market is growing faster than Cisco, and
the new market is free to go elsewhere (JNPR). Cisco's market cap will get corrected
when it becomes clear they are no longer is a position of strength and start to lose
business.

PG
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