Cisco (CSCO-Q)

Likes it, but this part of the economy is bleeding now. A tough call and is reluctant to endorse it. A fine company, but it's not the right moment.

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.

The CEO has righted the ship and the company is getting a lot of orders.

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.

It's a great barbell opportunity with expensive tech name. It's been raising dividends for 10 years. A great name.

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.

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.

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. 

Security and cybersecurity are huge growth areas. $28B acquisition of Splunk, fuelling the security AI observability business. Morphed from hardware to software and services. $13B a year in free cashflow, being used to buy back stock and increase dividends. 13x PE, a really cheap tech stock. Yield is 3.4%.

Yesterday, they announced that Nvidia chose them to be their ethernet partner. Their numbers could be huge next year.

On recent report, seems to be gaining market share from its competition.

Today's theme is the expansion in the AI ecosystem infrastructure. It's so key. Networking and infrastructure, data management, security, AI tools. His 12-month price target is $53, reasonable runway. Great report recently, surprised everyone by raising guidance. Lots going on. A good one to be a core holding. Yield is 3.4%.

Good company, but legacy products that are being lapped by competition. Every quarter, management has "a reason" for poor performance. Better choices in tech.

Was upgraded today. Customers are cutting budgets short term, but a company can't have AI without investing. Cisco will come out with AI-specific products. So, focus on their long term. Short term is not great at 2% earnings growth then 6% in 2025 then 2026. Trades at 13x PE. She will hold it forever.