Cisco (CSCO)

Slowed in its growth rate, but trades at a very reasonable multiple. You try to buy it a little bit lower. Buy under $20 as we approach the debt ceiling talks next month.

(A Top Pick Jan 26/12. Up 8.29%.) Sold his holdings when he rotated into Google (GOOG-Q). Earnings were not as impressive as he had hoped.

A lot of cash generation and free cash flow yield is very strong. Very strong balance sheet. Committed last year to a 50% return of free cash flow to investors. Likes companies that still have room to grow the dividend. Good balance between a very cash flow steady Eddie business on one side and newer businesses, which, last year 40% of them grew revenues at better than a 10% pace. Yield of 2.74%.

(Top Pick Jan 6/12, Up 5.42%) Still likes it. It is trying to break out.

Even though it has been very successful in selling its routers and making money, the long-term chart over the last 5 years is down even though you are up 5% in the last year. If US corporations are willing to start investing in capital equipment, then this is due for a run.

Sold his holdings about a year ago because growth prospects weren’t what he hoped for. IT space has been fairly challenging from a number of different perspectives. Have done a couple of really good things recently including instituting a dividend which they could grow over time. Without a real robust economic environment, all of the IT companies face a bit of a headwind.

(Top Pick Dec 2/11, Up 2.7%) Large tech. If it got to $21.60 he would be a seller. A buyer at $15.60. He would add to his position.

It is a name she is watching because it is trading at a single digit multiple and has a lot of cash. They are affected by increasing competition in their space, weak spending in their end markets, and they have been having to cut costs. They saw some strength in public carrier spending. They should grow, but employment has been weak and corporations are not putting in gear. It is very attractive and if we get an upswing in the economy then this is a name that would make a good addition.

Sees some growth. 3.3% yield. Balance sheet is rock solid. People will continue to need servers. It will be a trade only as it is has been in a range. These stocks are essentially utilities that build up cash.

Averaging into a position is a good strategy but averaging down is not. Tech spend is impacted by Government programs. It will trade in its range for a month or two and if it hits the high end of the range, take money off the table.

Very large networking company and have had a lot of issues over the last little while. Great balance sheet. Trading at a very low multiple. They are very enterprise based and this area has pulled back. Also getting competition. Product cycle has not been very strong of late. If you want to buy at these levels and hold for a couple of years you should do very well but in the short-term it will not move a lot.

(Market Call Minute) Sell it at $19

Still selectively buying this for new clients. One of his favourite names in technology. Market doesn’t appreciate its earnings quality and that it has so much cash on its balance sheet. Expect it will do well in this environment where the mobile phones and tablets continue to have faster processing chips. Continues to deliver good earnings. Trading at 7X earnings ex-cash and a 3% dividend.

This is a real value play for him. You have to view companies like this and Microsoft (MSFT-Q) as old legacy players in the technology business, like the Proctors and Gambles, etc. of the technology knowledge business. May not be exciting but they’ve got the brands, they’ve got the products and they’ve got the loyal customers and you know they are going to keep making company quarter after quarter after quarter. Nice dividend. Trading at a very low price.

(Market Call Minute.) This might be a Buy. They have started to turn things around.