Cisco (CSCO-Q)

Sideways chart which has a history of wide swings. It could now roll over, but is breaking above old highs. Tough to call this. It could continue breaking out. If it breaks above $55 and holds, then sell.

Never again reached its highs of 2000. Well known, mature. Fundamentals, more certainty, not a huge increase in mere hope of some of the pandemic stocks. There may be uncertainty about the future, but it's positive uncertainty.

Has owned for many years, and continues to buy. 
Trading at 14x earnings.
No debt, dividend very strong.
Growth consistent with share buybacks occurring.
Transitioning into services style business which creates recurring revenue. 

IT hardware. Lots of people are attracted to the dividend. Pretty attractive valuation. He prefers the software side, perhaps MSFT, GOOG, or CSU. Software is better at compounding capital.

Last earnings beat on top and bottom, extended guidance. 12-month price target of $60.50, decent runway. Hardware infrastructure. Yield is 3.07%.

Still likes it. He model $73.15 and further upside. If there's deflation in the US, this will fall to $39. Pays a 3.2% yield.

He divides tech into two groups. One has high multilples and high growth with less profitability, which can cause difficulties. The other comprises value type stocks which are less impacted by rising rates. An example of this is Cisco at 14X earnings which it has grown consistently. It also has a growing dividend, now at about 3%. Not a big growth stock though. His company has only a 7% exposure to tech.

Remains a stock that performs in a weak economy, which he expects for late this year. Since 1990, has outperformed in recessions. Subscription revenues now stand at 43% of overall and growing faster than overall. It's resilient. Valuation is fair and pays a decent dividend.

Great value and good PE. Their core software business deserves a higher margin. It's a higher-growth story than people think.