Cisco Too Cheap To Ignore

Cisco Systems, Inc (CSCO) is the leading maker of networking equipment for business/enterprise applications. With a 70% share in the ethernet switching market, Cisco is well-positioned to take advantage of the continued growth of data transfer via networks and the internet. The company’s dominant position translates to stellar free cash flow generation and its balance sheet is rock-solid, with nearly $5 in net cash per share. At its current share price of $17, CSCO may be an opportunity in a generally overpriced stock market.

As the once frontier tech industry settles into a mature state, stories of once-darling giants struggling to find new areas to conquer are becoming common (see Microsoft (MSFT), Google (GOOG)) and less than compelling. What is compelling, however, is Cisco’s valuation.

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One Response to “Cisco Too Cheap To Ignore”

  1. The Enlightened American » Portfolio Update Says:

    [...] Cisco Too Cheap To Ignore [...]

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