Mike Vinokur
Cisco
CSCO-Q
PAST TOP PICK
Mar 07, 2025
(A Top Pick Jul 05/24, Up 37%)
Splunk acquisition in cybersecurity segment has secured a lot more recurring revenue for the company. Steady eddy. Keeps making good acquisitions and integrating. Good management, balance sheet, and dividend yield.
Not cheap anymore, so he sold on the valuation call. Nothing wrong with the business per se if you have a very long horizon.
Company has been around for a long time, but is evolving. Current stock price is presenting value (price too low). Strong dividend and excellent balance sheet. Recent M&A will allow for higher earnings. Expecting growth going forward.
It's turning things around after three terrible quarters. People don't believe in this stock. They're making a push into AI and the Splunk purchase was good. But one more bad quarter, and he will sell.
He's been trimming this for underperformance and this week sold the rest of his holding. True, he liked their acquisitions and other things, but couldn't stand the price action (down) and took a loss.
Their last quarter beat including growth projections an it's one of the cheapest tech stocks. It lags peers, but it still grows around 5% and trades at 13x PE.
After delivering a blow-out quarter in August, shares jumped 33%. Then they just announced another strong quarter, beating top and bottom and delivering excellent guidance and raising their full-year forecast.
Splunk acquisition in cybersecurity segment has secured a lot more recurring revenue for the company. Steady eddy. Keeps making good acquisitions and integrating. Good management, balance sheet, and dividend yield.
Not cheap anymore, so he sold on the valuation call. Nothing wrong with the business per se if you have a very long horizon.