Bill,
I have no idea who's going to win -- that's why I own both. But they definitely seem to be head and shoulders above anyone else in the telecom equipment area. Frankly, I think they're both going to thrive. It's a big, untapped world out there. Let's hope they don't get into those insane price wars that sank the networking sector, but I think it may not be an issue because this race seems to be about technology rather than pricing (famous last words).
As far as an entry price for CSCO, it seems to me anything in the high 60s would be a great price. I don't know why they've survived the sell-off so well. Looking at a chart, there appears to be support at 69, 67 and 63. I don't know if yesterday's 73 counts; it had good support at 75 before that. I've owned CSCO for two years, and during that time I've watched it get creamed and then rise steadily. At these levels, it's likely to be rocky for a while, but eventually you'll be awfully pleased you bought it. I'm looking to buy more at 70 myself.
If you've got access to Briefing.com, they had a pretty good article today (in the stock brief section) on the switch from processor speed to bandwith, and LU and CSCO were mentioned as the two companies to buy, followed by TLAB (which I don't own).
Good luck to you too.
Paul |
