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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (67029)	2/11/2005 8:37:15 AM
From: RetiredNow	Respond to of 77400

Yes, I've heard those arguments. I too believe that Large Cap is valued cheaply. In my book, Cisco can be a great value investment, once (if) they get rid of the dilution. If that happens, then you should see investors flock to the stock, given the earnings growth power stemming from the rapid pace of their buybacks. Did you know that they are an annual buyback pace of $10B per year? At today's prices, that's a roughly 500M o/s share decrease every year. That will add an extra 10% to their earnings growth over the next year and will continue to accelerate as the o/s share number comes down. Then add to that the topline growth at 15% and you have a company with EPS growing at around 25%, with a forward PE of 21. Oh and btw, in the most recent quarter, EPS almost doubled. So the measures are starting to look good. The only piece not in place yet is the stoppage of the dilution. But I'm hoping that will come this year. And since I'm a patient guy, I figured buy 5 months ahead of that is not a bad idea.