Wednesday, December 07, 2005

Cisco Systems sticks by growth projections - Internet Hardware - Networking - Computer Hardware - Company Announcements - Earnings

Fortunes were made in Cisco during the Web 1.0 days. The industry has suffered badly since the dot com bubble broke. It now seems like hundreds of years ago when Cisco was a very hot stock.

I doubt that it will ever see the glory days of old again, however, internet video traffic is going to boom in the coming years. JNPR and CSCO will each get a fair share of the equipment to be purchased. China will produce a lot of equipment as well.

My friends and family accounts hold no shares. We did one short term trade on JNPR earlier this year but left the area for greener pastures. We will continue to monitor the equipment area. TXN and MOT have been nice gainers for us. There is no doubt growth in this area. Investors always must distinguish between revenue growth and profits. It is very possible that the increased business as a result of heavy video traffic could boost both revenues and profits. This capital intensive markets always have high break even points but the operating margin from break even onward is a lovely flow of cash going to the bottom line. Keep your eyes open, the stock is hated by folks such as Cramer, who have tired of waiting for the turn. It must be near!