CSCO. My premise was relatively high roe, relatively low p/e, good profit margins, nice cash balance, dividend while waiting.
Some or all of that might still be true. Otoh, company seems to be a serial acquirer -- and I don't see what their focus is. Hiring in some areas, laying-off in others. That can't be so great for morale. Maybe morale isn't important for business results -- it troubles me though.
I can't see enough to understand that the company might bounce back, as several others have done in this bull market. Some haven't -- IBM. I'm willing to hold a few like IBM, not sure I want to tie up money in CSCO waiting for 3-6 quarters to see IF a turnaround in fortunes occurs. Otoh, maybe the worst is now (stock near the lows it will see) and a slow recovery occurs. I don't know, don't have a feel for how the company will perform.
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Down a few hundred bucks from purchase price. That's more than the dividend amounts I've received.
My few purchases began 11/12 continuing into '13. If I view CSCO as a beat down value stock, then I generally will expect to give it two years (sometimes three) before I call it quits. So I guess looking at it that way, I might still hold CSCO another year to see if business/stock recover. |
