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On January 1, 1997, many regarded Ascend, 3Com and Cisco as the primary players in the networking equipment industry. Industry researchers forecasted 35% annual revenue growth for the networking industry over the next five years. The stocks traded at 62 1/8 for Ascend, 73 3/8 for 3Com, and 63 5/8 for Cisco. Almost a year later, Cisco continues to grow its market value, while 3Com and Ascend have dropped like a rock: ASND 24 3/8, COMS 30 5/16, and CSCO 81 3/8. The ratio of market capitalization between CSCO and the sum of ASND and COMS has increased from 1.15 to 3.6! The market seems to think that Cisco is distancing itself from it biggest competitors. |
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