NYT: Like many technology stocks, Cisco has had a very nice price pop since late September. Yet you have an "accumulate" rating on the shares. Why do you see more room for the stock to go up?
Ching: Assuming demand remains relatively stable, I think they have moved beyond restructuring. They have been announcing new products and new business initiatives and are focusing on what they have to do to gain market share. Think about how many businesses are truly using the Internet to its full potential. The answer is: a very small percentage. We are very optimistic that there will be more investment over the next few years. If asked who is likely to lead that charge, my answer would be Cisco.
NYT: The decline in spending for all kinds of telecommunications equipment this year has been stunning. Can you put what happened this year in some perspective?
Ching: Over the last half-century, there have only been six years when telecommunications equipment orders fell. We are looking for a 22 percent drop this year. Prior to this year, the biggest decline was a drop of 4 percent in 1986. So, hopefully, we won't see this again.
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