02-13-2014, 02:44 PM
Value trap or opportunity?
According to the release the company has $47B in cash and generated $2.9B in the quarter.
$2.9Bx4 = $11.6B in annual cash flows.
CSCO currently has a market cap of ~$117B with ~$16B in debt.
Stock trades at about 11X projected earnings.
3.5% yield coupled with the big buybacks and great cash flows I don't see much risk here unless the company's sales completely implode.
According to the release the company has $47B in cash and generated $2.9B in the quarter.
$2.9Bx4 = $11.6B in annual cash flows.
CSCO currently has a market cap of ~$117B with ~$16B in debt.
Stock trades at about 11X projected earnings.
3.5% yield coupled with the big buybacks and great cash flows I don't see much risk here unless the company's sales completely implode.