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NASDAQ:CSCO

Cisco (CSCO)

119.25
-0.29 (0.24%)
as of Jun 18, 2026, 11:48:31 pm Market Open.
354 watching
0
DON'T BUY
Technology as a group has been going out of favour. There is tremendous margin pressure going on. This one has a lot of government business and governments have been cutting back.
DON'T BUY
You can wait before owning this one. Trading at an attractive multiple of 9X earnings. Just reported their 3rd quarter and guided down. End market is the public sector which has been weak in the past because state and local governments have been pulling back. Carrier telecom spending has been weak. Commercials and enterprise companies are expecting to see weak demand going forward.
WATCH
Chart is not very attractive. Shows a classic head and shoulder pattern which it broke about 2 months ago. The trend now is on the downside. Stock does seem to be finding a bottom finally and there seems to be early signs of outperformance. Keep this on your watch list.
COMMENT
Cisco (CSCO-Q) and DELL (DELL-Q) Value investments? If he had to own one of the 2, he would prefer this company. Thinks there will be a recovery in telecom spending. Increasing dividends and buying back stocks. Good growth potential.
COMMENT
Doesn't follow this one closely but the space is of interest to him. There is a lot more going on now with networking through iPads, iPhones, etc. The bigger picture for this company is therefore positive. However, it is priced for perfection. He tends to avoid the big companies because they can get hit so easily.
COMMENT
Has not had a bad operating track record in terms of revenues and earnings growth. Expect people will not be buying routers, etc. too enthusiastically so the stock will probably not go anywhere in the next few months.
COMMENT
A bar chart would show you that this broke a topping pattern at around $18.50 earlier this month and did a Gap, i.e., it closed one day at a specific price and opened lower without any price increments. This is a sign of something rotten. There could be some support coming in at around $15. If you own, he would use any kind of a near-term bounce to get out.
BUY
Stock took quite a bit after their earnings report and the CEO’s outlook. Very pristine balance sheet with a lot of cash. This company deals on the enterprise side and competitors have gotten better with their products. Also, the enterprise side on those particular products are not as robust as they said. At this price, it is a good opportunity to get into a great company with a great balance sheet and trading at a very cheap multiple. Has the potential to buy back stock and increase their dividend.
WATCH
Reports tomorrow. Definitely on her watch list but she hasn't made any move to Buy. The call tomorrow will be important because during the past year and a half, they saw the slowdown coming as well as some increasing competition. If US growth continues to pick up, there will be some spending increases. Multiple has come down quite a bit and they have quite bit of cash.
DON'T BUY
Growing much less than it used to. Technology, from a seasonal basis, tends to do well from October into January but this year, technology kept going. Chart shows this company has broken its downtrend, which is positive. Resistance is at around $21 but he would be careful. Looking for it to get down to $18, and perhaps even lower.
DON'T BUY
(Market Call Minute) Struggling to articulate growth strategy.
BUY
Continue to end up being a survivor from the big Internet go-go days. Have retrenched and attempted to become more profitable. It ranks 317 out of 2,400 stocks and is in the top 15% in his US database. ROE is attractive at 20%. PE on the trailing base is at about 12X. Earnings growth is modest at 8%.
DON'T BUY
Sold his holdings about a year ago. They are really not the company they used to be. They used to target 12%-17% revenues growth and are now targeting 5%-7%. They don't have the same oomph that they used to have.
PAST TOP PICK
(Top Pick Mar 24/11, Up 17.05%) He sold it and broke even
TOP PICK

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