Zeev's Turnips Patch-No Politics (ZEEV)

[Alexander]

Zeev

I think this correction is for real. Csco's report next week could accelerate the correction. The stock is trading at a trailing p/s multiple of 10, which is OK if you are a fast grower with impressive margins. exxpecations in csco's stock are just too high.

Historically (99-00 not included) csco p/s multiple has fluctuated between 5 and 14, but that was when sales were growing at +30% annually with impressive margins. Now, you have still impressive margins, but not the grwoth rate.

Anyway, what's the likelihood we fall below 1955 and test 1850?

Alexander