Stockchase InsightsCiscoCSCOHOLDNov 20, 2023

Transitioning from router hardware to software and services, as revenues are recurring with higher margins. A pass, as current environment will impact companies' capital spending. Hardware still majority of its business. New acquisition may make revenue less cyclical.

A few weeks ago, it gave disappointing guidance, so shares declined. Now that the reset is done, shares are rebounding with nice momentum. This remains a steady-eddy dividend payer.

It's over its skiis, overpaying for cybersecurity assets, so he sold it. It's a great name, but he see better earnings elsewhere in tech.

Wait two quarters before this shows decent growth, though some investors may not wait that long.

It had a bad week last week but is ready to recover.

Reported today and shares slumped after hours. They reported solid results, but guidance was not pretty for the current quarter and full year, $12.6-12.8 billion in revenue vs. the expected $14.2 billion forecast. But there's a lot of developments in the pipeline for 2024.

Sideways chart which has a history of wide swings. It could now roll over, but is breaking above old highs. Tough to call this. It could continue breaking out. If it breaks above $55 and holds, then sell.

Never again reached its highs of 2000. Well known, mature. Fundamentals, more certainty, not a huge increase in mere hope of some of the pandemic stocks. There may be uncertainty about the future, but it's positive uncertainty.

Has owned for many years, and continues to buy. 
Trading at 14x earnings.
No debt, dividend very strong.
Growth consistent with share buybacks occurring.
Transitioning into services style business which creates recurring revenue. 

IT hardware. Lots of people are attracted to the dividend. Pretty attractive valuation. He prefers the software side, perhaps MSFT, GOOG, or CSU. Software is better at compounding capital.

Last earnings beat on top and bottom, extended guidance. 12-month price target of $60.50, decent runway. Hardware infrastructure. Yield is 3.07%.

Still likes it. He model $73.15 and further upside. If there's deflation in the US, this will fall to $39. Pays a 3.2% yield.