Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (41396)	2/11/2011 12:41:18 PM
From: JakeStraw	Respond to of 78742

CSCO - Investors would have done a lot better in the past couple of years in RVBD, FFIV, or ALLT finance.yahoo.com

To: Jurgis Bekepuris who wrote (41396)	2/11/2011 1:12:33 PM
From: Mr.Gogo	Respond to of 78742

This is why I sold the put and didn't buy the stock. This way if it gets to 15 I will get the stock if not will keep the premium. I think CISCO is undervalued at 14 PE. They are the leader in the high end equipment. The acquisitions they made and the investments in new fields will pay off very well. At least the probability is good IMO. I cannot see in the future too :) Good Investing, Georgi

To: Jurgis Bekepuris who wrote (41396)	2/11/2011 2:26:58 PM
From: Madharry	Read Replies (1) \| Respond to of 78742

OT i like the price action this pm on goog.

To: Jurgis Bekepuris who wrote (41396)	2/12/2011 11:27:59 AM
From: Grantcw	Read Replies (1) \| Respond to of 78742

Hello Jurgis, I'm positive (though less so than I was 3 months ago) on CSCO in general after doing more research over the last few days on this last earnings report, but I'm curious as to why you don't think it's cheap until the 16's? Have you attempted a DCF analysis on CSCO? My quick ones imply to me that CSCO is undervalued at current price levels. What I see is that CSCO is not doing so well in its legacy product lines, but its services business is growing (with strong margins). And new product lines are growing at a pretty good clip. I guess my overall thesis is this: CSCO is not a $300+ Billion value company anymore. It's closer to $100 Billion, and less if you back out some of the cash. To me, without growth, it's current cash flows justify at least it's current valuation and I have confidence that CSCO can leverage it's brand name and technology to achieve growth in new product markets. That being said, I don't see CSCO doubling in value over the next five years. My view is more that it should be worth $22-$24/share right now. It could (and probably will) go down here more, but I see the downside more limited than the upside. So, in this market, where I have little cash, I'm considering rotating some of my higher beta names that may be a bit toppy into more CSCO to play for a potential bounce in the medium-term with less downside when we correct. So, I believe CSCO is a decent place to park money these days in this market, but I'm not pounding the table either. Thanks, Grant