January 7, 2011
Cisco Systems, Inc. (CSCO)
Written By Ingrid Hendershot
From Hendershot Investments: “Cisco Systems, Inc. (CSCO) reported revenues for the first quarter increased 19% to $10.8 billion with growth experienced in all geographic regions. Earnings increased 8% to $1.9 billion with EPS jumping 14%, aided by the repurchase of 113 million shares during the quarter for $2.5 billion. Investors can expect Cisco to continue to absorb bandwidth through share repurchases throughout fiscal year 2011 given a recent new $10 billion share repurchase authorization. Cash flow from operations increased 10% during the quarter and remained strong at $1.7 billion. With an expected free cash flow yield topping 9%, Cisco is planning to further reward shareholders by paying its first dividend in fiscal 2011, which should yield 1%-2%.
“Cisco continues to manage a strong balance sheet with over $38 billion in cash that can be used to expand the business through acquisitions and innovative investments. For the full fiscal 2011 year, John Chambers, the company’s CEO, believes that the company will grow revenue between 9%-12%. While Cisco management expects short-term challenges over the next several quarters in the public sector and in Europe, they remain very optimistic for the long term given strong growth in emerging markets and new products and innovations in the areas of video collaboration and data center management that are being well-received by customers.”
Ingrid R. Hendershot, CFA, Hendershot Investments, 12/10
I have a web site where I research stocks under five dollars I have many years of experience with these type of stocks. I am a astute value investor. I think cisco systems is not a bargain here. I would like to recommend a stock that I think is and can profit from the so called internet tsunami. the company PFSweb Inc. symbol (PFSW) trades around 3.00 dollars a share. provides integrated e-commerce and business process outsourcing solutions to companies in the United States, Canada, and Europe. It offers a range of services, including professional consulting, technology collaboration, managed Web hosting and Internet application development, order management, managed web hosting and web development, deployment of an eCommerce technology platforms, customer relationship management, kitting and assembly services, information management, and international fulfillment and distribution services, as well as financial services comprising billing and collection services, and working capital solutions. In addition, the company, through eCOST.com, engages in online discount retail of new, close-out, and recertified brand-name merchandise, I think the stock can get to 30 dollars a share over the next five years.