Cisco (CSCO)

It is a new position. He is staying in the tech space because the money flows in (from the commodity sector) are good. They have a fabulous balance sheet. It has room to grow at 10%. The PE is very low so the stock is not expensive. They have so much cash on the balance sheet they could go out and buy someone in a heartbeat.

(A Top Pick Feb 27/15. Down 2.86%.) Likes this and the story hasn’t changed. They are doing a lot of things well and they are in the right spaces. With the increased usage of smart phones, traffic data is going up, and with their network solutions they are helping manage that and keep carriers’ spectrum efficient. Also, well positioned to capitalize on this “Internet of things” that we keep hearing about. Also, remember cyber security and how much focus is on that. 2.9% dividend yield.

Seasonality is normally from October until January and then it kicks in again around now until May. This is okay for a seasonal trade. On a technical basis, you would like to see the stock flatten out, and if it got above its previous high, that would be a clear signal that the seasonal trade has clicked in.

The backbone of the internet. Their products can be replaced by new and better hardware. They will have more competitors than in the past as software can do a lot of what they do. It is a value trap.

Thinks the dividend is going to continue to increase. He likes the balance sheet. Really believes this whole Internet of things and connectivity in the global world we are moving into, is really a big deal. This company is at the centre of all this. Thinks it is going to be a big winner. The fair value is considerably higher than the current value and you are going to get paid twice what a 10 year treasury bond will give, while you wait.

It was his second largest position at 38 times earnings. They went to 200 times earnings and he sold and has not gone back in since because they are now a hardware based company and others can do what they do through software.

He likes the dividend and he likes the name. Have positioned themselves to be very relevant for what is coming up for the next 5-10 years. Have been active in the wireless space, so with everybody doing so much on their smart phones, mobile data traffic has really picked up. Also, cyber security threats will increase demand for this company’s networking products. Just reported and they had a great quarter. Yield of 2.83%.

Shows up on his screens as a pretty good purchase at this point. Have had some decent earnings reports recently. They are the backbone of the Internet. Trading at 13X earnings with a high single digit growth rate. The large cap technology names are doing well. A good name.

It is just starting to get going. When you consider the net cash flow there is a lot of value in the stock. The company has been very up front about how they are dealing with competitive threats.

Has done very well recently. They were having some challenges with some of the smaller players taking share in individual markets. Good company. Valuation has crept up a little bit. He sees better value in Apple (AAPL-Q).

Some of these technology stocks are really taking off. Outperforming the market right now, during a period when they are supposed to start lagging the market. In technology stocks, usually all of the good news is built in during the month of January and tends to underperform between about mid-January all the way through to March. Then from March all the way through to September they take off again. If you are taking a seasonal perspective, then it is probably best to stay away. They can be very volatile here.

One of North America`s best retailers. It is at 30 times earnings, which they probably deserve. It is simply too expensive for him. But they have been delivering over a long period of time.

Thinks there is growth here. A rock solid balance sheet. He is a big believer in this internet of things and how more and more devices are going to be connected to the Internet, and this company is the major builder and supplier of a lot of those backbones. Trading at around 14 X next year’s earnings. Yield of 2.70%.

The US equity market is seeing net money put to work, but there are only 4 or 5 key sectors that are leading this market, and technology is one of them. He likes those companies that are in high growth industries with something special and a special pricing power, which can give them revenue growth. The technology companies that he is invested in are big cash flow generators, and this would be one of them. 2.7% dividend yield.

Has been focusing on the mobile side of things. Did 6 acquisitions last year to beef up their ability to take advantage of what is going on in the mobile side. With increased sales in smart phones, there is certainly an increase in data traffic. This company’s network solutions help carriers manage that data traffic, but also stay spectrum efficient. From that perspective, he likes the name. The challenge at this point is China, where a large part of their revenues come from, but where they have a brand imaging problem with the NSA scandal. The Chinese government is saying the US government spied on them using this company’s equipment. This pays a decent dividend, but the valuation is not compelling enough for him.