Replies to post #42701 on Zeev's Turnips Patch-No Politics (ZEEV)

[sylvester80]

*DJ Cisco Sees FY2Q Revenue Flat To Down A Little >CSCO
05:22 PM
+DJ Cisco CEO Saw Some 1Q Challenges In Customers' Visibility
04:39 PM
*DJ Cisco CFO: Good Chance Carriers Reduce Gear Spending
05:07 PM
*DJ Cisco CEO Says Customers Are A Little More Cautious In 2Q
05:18 PM
*DJ Cisco Sees FY2Q Revenue Flat To Down A Little >CSCO
05:22 PM

[Public Heel]

Ze'ev... how do you know about the $400m in inventory benefits? Is that an educated guess? I knew last year when they wrote that off that they'd try to get most of it back without publicizing it, but I figured a fair amount really would be obsolete by now...

[gtober]

Well Zeev. Notwithstanding the "impressive" showing of this Tech "leader", I found an interesting stat today.

I have counted 12 +1000 or better TICKS since Nov. 1. Now, forget about the fact that we have at least 4 unfilled gaps below, I have not seen a performance like that wrt. to TICK readings since they were -1000 just after 9/11/01. (i believe I counted 12 or 14 back then) I'm not sure if your data confirms this, as I simply use the data provided by my quote provider, but nevertheless, that's one heck of a top.

I don't know if this is a new bull market or not. I don't care at this point. I just think we have too much repair work to do on this foundation before we can put up the walls.

GT

P.S. You said a while back you expected new Nasdaq lows this year if the FED cut rates. Has the strength of this rally changed your mind on that count. Or did this rate cut just solidify that viewpoint.

[Tenchu]

Zeev, can you respond to this comment made by GVTucker (from SI)? I referred him to your comments on CSCO, and he had this to say:

I'll wait for the 10-Q to come out before I jump to any conclusions. I should note, though, that the gross margin, Zeev's major source of concern, was pretty much the same as it was last quarter. And when you compare it to the bubble gross margin of 66%, when CSCO was a much less efficient enterprise, I don't see 69% gross margins as being totally unreasonable. Zeev is looking at a really tough compare, the Q a year ago when CSCO reported a loss and threw everything but the kitchen sink at the numbers to make them look bad.

Tenchu