Hi Yaacov, Albert, Chic, et al, and John & John,
Looks like the semiconductor gang is here. Does this mean Cisco is a cyclical stock now? Should Intel buy Cisco? (Just kidding)
I bought a little bit of CSCO on Friday at 15+. I probably should write some covered calls on these. Ideas?
Cisco is in a world of hurt right now. Telcos giving away free routers. It's really one heck of a glutted market.
The good thing though, is that next year, folks won't want to buy one-year old Cisco routers that are floating around Ebay, CDNs, and Telcos. Fortunately, technology keeps changing. Thank goodness too.
John K & John S, thank you for your excellent advice, and as a result of it, I avoided a re-entry into CSCO until now. (I had bought some CSCO a few weeks ago, but had thankfully sold on the same day after conversing with both John S and John K.)
I haven't had a chance to see what your thoughts are now, nor did I have time to run the numbers thoroughly, so I just bought a very tiny amount, just enough to get me more motivated to start watching Cisco. Loosely, I had figured we've got anywhere from one quarter to two quarters worth of inventory. I probably entered too early. Just my luck, it'll probably go down to $7 and it could very well, but I intend to go long and build a position in Cisco, so if it goes down, I'll be happy since I'll use the premiums from calls to buy more.
I could use your help on valuation before I make any serious moves to increase my position in CSCO. What are your thoughts on valuation? Still seems a bit over-priced to me, given the glut and 8% annual stock dilution?
I haven't been long Cisco for a quite some time, maybe 2 years now, I don't recall? Glad to be back. I like Cisco. Cisco's current setback is much worse than the one they had in 1994. I hope the employees keep the faith. It's a good company.
So, I am now long Cisco, but only with a toe in the water. Your thoughts?
Thank you,
Amy J |
