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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 72.11-0.3%Nov 5 3:59 PM EST

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Gottfried
Jorj X Mckie
To: Sr K who wrote (77198)10/16/2013 11:22:27 AM
From: robert b furman2 Recommendations  Read Replies (1) of 77397
 
The demise of these very well capitalized blue chips has been ongoing for years.

Intel was lost with PC only chips yet Samsung now uses their chip in what is the better competing product to iPad.

Csco was supposed to be taken over by Juniper and now facebook.

Msft did not have an internet answer,but now has bought Nokia.

These are all huge companies and are not the nimble players they once were.

They also have the cash to buy anyone or thing out there.

The R&D / patents that have been accumulated make these giants formidable large revenue players for the long term.

They possess armies of employees that can implement projects for midsize and small size businesses that are embracing their technology faster than ever before.Employees are now the expensive variable,but necessary when you do business with midsize to small sixe companies.

Unfocussing on the slowing government expenditures is a good alternative.

Many businesses are spending what ever must be spent to cut employee costs out of the future.

These are mature companies that now are embracing a dividend policy for stock holders.

The huge almost exponential growth has been long gone - but I do not think it is fair to say they will be eliminated - even if Facebook uses someone else to build their data center.

These are great stocks to sell puts on over a longer time frame (leaps).

If one is assigned the stock - enjoy the long term dividend stream it kicks out and experience a yield that almost exceeds twice the 5 year treasurey and at a more favorable tax rate.

Is it boring you bet - does it build long term cash flow / wealth - you bet.

I just sold 50 puts for 42 cents. January 2015 15's.I recieved $2100 and a possibility of buying Csco at 14.58.Current dividend which I expect to go up in 2014 is 68 cents/14.58 = a yield of 4.66%.

Only sell puts if you want to buy the stock - anyone out there want to buy Csco at 14.58?

The time decay of the puts usually makes this a cash receive only transaction - but one must wait out the passage of time.

Just another very safe approach to making money on this very well capitalized mature company.

All IMHO

Bob
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