Cisco Systems, Inc. (CSCO)

sheycavin (66.42) Submitted: 12/09/07 11:55 PM : Start Price: $27.68 CSCO Score: 0.03

Unless you believe that the Internet is going away, then you have to be bullish on Cisco. Why? Well, for one Cisco accounts for about 85% of the Internet. There are competitors, but none are even close. Another thing to consider is that no one purchases a high-end Cisco product (a GSR, CMTS, or metro ethernet router like the 10720) and forgets about it. They buy support contracts and they also have to keep it upgraded. So the revenue from the sale doesn't end with the sale. To me, Cisco is very much like the early railroads. The knock on Cisco today is that their growth is over. I'm sure that was the knock on Union Pacific in 1870. Would you like to find a trunk full of Union Pacific stock from 1870? Cisco's management did an impressive job shaking off the tech bubble and their recent acquisition of SA also seems like a smart move. Plus they have one of the best share repurchase programs around and they've recently decided to step it up even more. They generate plenty of cash and they've done a great job managing shareholder equity. Management-A Fundamentals-A MOAT-A Growth Opportunity-A Price-A

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