Friday, March 25, 2011

Cisco (CSCO) At Crossroads of its History

No matter how you look at it, it appears the days of heady growth for Cisco (NASDAQ:CSCO) are over and it needs to be considered as a more mature company by investors.

It seems Cisco is rightly considered too big to generate significant growth, as investors punish the company after its latest quarterly results which seem to confirm it.

Other than a couple of temporary upward moves, Cisco over the last year has continued to lose share value, dropping almost $11 a share during that time.

A positive for the company is the reduced expectations, which could provide investors with a good entry point.

They still have a strong balance sheet and are a well-managed company.

It appears Cisco Systems has turned into more of a long-term play, and unfortunately they don't have a great dividend to entice many that could be sitting on the sidelines, as they pay out close to 24 cents a share, which yields 1.4 percent.

Cisco closed Thursday at $17.36, dropping $0.22, or 1.25 percent.

2 comments:

Anonymous said...

Cisco is a value trap. They are not a long term trade, they have become a big goliath. Jack of all trades, master of none.

They are losing customers since to smaller companys who offer a deeper capability set and better support. ie F5 for example when it comes to L7 cloud computing.

Anonymous said...

Wishful thinking from a competitor.... Bet against them at your own risk !