CSCO

[BLTN]

Anyone thinking about buying CSCO today? Down 10% in the last 24 hours.

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[Rasec]

Yes, adding to my position right now. The internet will be around for long, and the internet won't work without Cisco, at least not the way we know it.

[BLTN]

Rasec

Great minds think alike. I had been waiting for a pullback. I purchased 66 shares.

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[crimsonghost747]

(05-18-2017, 09:45 AM)Rasec Wrote: Yes, adding to my position right now. The internet will be around for long, and the internet won't work without Cisco, at least not the way we know it.

I think that's a pretty flawed way of looking at it. That's like saying you can't have a mobile phone without Apple or that you can't have a car without Ford building it. Cisco is just one company among many others (even if it is the largest) that works with network technology.

[Rasec]

(05-18-2017, 11:13 PM)crimsonghost747 Wrote:

(05-18-2017, 09:45 AM)Rasec Wrote: Yes, adding to my position right now. The internet will be around for long, and the internet won't work without Cisco, at least not the way we know it.

I think that's a pretty flawed way of looking at it. That's like saying you can't have a mobile phone without Apple or that you can't have a car without Ford building it. Cisco is just one company among many others (even if it is the largest) that works with network technology.

I wouldn't definitely put Ford and Cisco/Apple in the same sentence... ever!!   (when was the last time Ford announced anything close to being innovative?)

You are correct, but Cisco sits in the forefront of innovation and technology in this front, they have way too much money (mostly parked oversees) and are making strategic acquisitions to continue to stay in the forefront. Yes, the internet will still need routers and switches and hubs and all that good stuff, but Cisco is also moving to other lines o business as well, like software (saas), security, AI/ML, etc. 

Earlier this year Apple was trading at $92 and being bashed in this forum as a dying company... 3 months later it's trading at 52 weeks high. Maybe Cisco will follow a similar pattern, maybe it won't. In the interim I'll collect ~3.5% dividends while I wait and see.

[crimsonghost747]

(05-19-2017, 12:01 PM)Rasec Wrote:

(05-18-2017, 11:13 PM)crimsonghost747 Wrote:

(05-18-2017, 09:45 AM)Rasec Wrote: Yes, adding to my position right now. The internet will be around for long, and the internet won't work without Cisco, at least not the way we know it.

I think that's a pretty flawed way of looking at it. That's like saying you can't have a mobile phone without Apple or that you can't have a car without Ford building it. Cisco is just one company among many others (even if it is the largest) that works with network technology.

You are correct, but Cisco sits in the forefront of innovation and technology in this front, they have way too much money (mostly parked oversees) and are making strategic acquisitions to continue to stay in the forefront. Yes, the internet will still need routers and switches and hubs and all that good stuff, but Cisco is also moving to other lines o business as well, like software (saas), security, AI/ML, etc.

Now that's a very different (and much better) reason for buying. It's not that "the internet needs Cisco" but rather that you have estimated that in the future they will have an advantage over their competition with their balance sheet, diversification and their upcoming technologies.

Hope it works out for you. Personally I try to stay away from these more mature tech companies but that's just personal preference.

[ken-do-nim]

I was going to start a thread on Cisco, but I found an existing one.

Anyway, I want to add Cisco to my portfolio, but even I must admit it's had a nice run this year (especially in the past week) and now is perhaps too pricey. Furthermore, I just read this article which says:

"Cisco appeals to the dividend growth investor seeking a relatively safe, income producing stock. The dividend has a current yield of 2.54%, a payout ratio of just over 43%, and a 5 year dividend growth rate of 9.21%. Those metrics appeal to those seeking income from a stream of dividend payments that are both safe and growing at a rate that exceeds inflation."

Then a bit later ...

"Cisco provides mission critical products for network performance, stability, and security. The company has demonstrated an ability to garner high profit margins and to generate robust strong free cash flows.

In the most recent quarter, CSCO's core products registered strong growth. This resulted in a surge in the share price, and the stock is now up over 30% year-to-date.

My only real concern regarding an investment in the firm is that its growth path is opaque. If growth materializes, the impetus will be provided by the Applications and Security segments. However, the two segments' combined revenues constituted only 17% of the firm's total in FY 2020. Those segments also recorded a growth rate that was close to a breakeven last quarter.

Consequently, I rate Cisco as a HOLD."


Not the glowing recommendation I was hoping for, but I think it's realistic. Looking at their 5 year chart, I see a nosedive from mid-July 2019 in the high 50s to the mid-40s that August. So I will wait and watch.

[fenders53]

MRK has outperformed CSCO 3X since 2000. Yeah I cherry picked the dates. Not quite back to it's 2000 ATH yet. One of the first tech stocks I owned in the 1990s and it was a very nice ride. They were so dominant. Now they battle to not lose market share. I gave back most of my CSCO profits before I bailed and put it in JNJ long ago.

I would put it on my watch list. When it dips real hard I predict you'll probably find something better to buy instead.

[Dividendwayfarer]

I have accumulated around 200 shares of CSCO, mostly in their 30s or low 40s. I now see a nice gain considering the time I hold but I actually don’t mind dumping them if I see a better buy. They were a “safer” tech stock back then and in hindsight, I should use the money in AVGO as AVGO did better from a cap gain & dividend perspective. I will not add at this point and I don’t see this old tech grow much.

[ken-do-nim]

Cisco is another company that is trying to reinvent itself. Its software and services segments now combine for nearly half of its overall revenue. So, I think watch list it is.

[fenders53]

They remind me of INTC. Still important but you need a discount because you have dead money if things don't go quite well. Safer than a high flyer that stumbles with a high PE and no Div.

[rnsmth]

I own CSCO (cost basis $45.18). Its 5 year dividend growth of 9% is acceptable to me, for a mid yield company (currently 2.5%). Thing is, last year they rewarded shareholders with a paltry 2.8% dividend increase (Feb, 21).

I am thinking they are going to have to do at least double that to keep me from seriously looking for a mid-yield, faster dividend growth replacement for it. There are the facts that its share price appreciation has been picking up some, and that its SSD dividend safety rating is up there in the Very Safe range

Any replacement would also need to be in that range.