Category Archives: $CSCO

NASDAQ Closes above 5k! Bail out or Buy more? 2CentView …….

Can the NASDAQ power on from here or is this Y2K all over again?

$CSCO traded on a p/e of 100x in 2000 and there was talk it could become the first trillion $ company. Today, it has a market cap of 145bn a p/e of 13 and a growth rate of just 5% over 5 years – so not exactly the same as Y2K.
The Biotech sector is showing some signs of a bubble brewing up – but this is still not on the scale of bubble in 2000.

Mobile Social and BioTech stocks have done well over the past 18 months – PC related stocks have performed poorly – and will probably remain that way as there is no growth in PC – look at $INTC and $HPQ recently…

There are very few bargains left in these hot sectors – the last one $SWKS (Skyworks) which was an incredibly cheap stock at $60 when 2CentView tweeted the name back in November 2014, is now $102!

Value names in various Sectors:

PC’s
Keep away from PC Stocks for now – if you do want to buy, $MU is the cheapest.
$MU FV = 38
$HPQ FV = 35 Yield 2%
$INTC FV = 29 Yield 3%

Mobile/Social/Internet of things/Wearables
$GOOG FV=600 – was a great opportunity to buy when below $510
$MSFT FV= 45 – if you think they can move out of their depdendence on the PC
$CSCO FV=30 – buy some for the yield of 3% and potential in the internet of things – implied growth still very low

Internet Software and Services
$BABA FV=120 – includes $20 cash – implied growth 25% vs 45% on $AMZN
$Z FV=108 – Spencer RasCoff is a great young CEO
$YELP FV=70

Biotech/Pharma
$GILD FV = 109 also pays dividend! HepC is competition is heating up though!
$JAZZ FV=189 – could be the next pharma take out!

Solar
$CSIQ FV=60 [see earlier tweet on this name ]

2CentView has core positions in $AAPL, $GOOG, $FB [3 best tech companies in the world!], also $TWTR, $ISIS, $CELG , $GILD and $FEYE

2CentView FVs are calculated using a proprietary earnings based model which has been calibrated to determine a fair vlue stock price today. It is based on consensus analyst predictions of future earnings – these are predictions only and may not play out in the real world. It is designed to identify mispricing between the stock price and future earnings potential of the company. The model has helped 2CentView realise a 35% annual gain over the past 2 years.

$CSCO (Cisco) FV =30 vs 26.3 + 2.9% Yield – good opportunity to buy if you want to own ..

Tweeted this name back in March 2014 as and ‘Old tech’ stock to buy on the rotation out of growth stocks.

FV now 30 ($24+$6 cash), so if you missed the opportunity to get buy at 21, now maybe another opportunity.

Cisco is a great, quality company which has built the internet infrastructure we all use today.

If you are looking for a good yielder with moderate upside, buy $CSCO below 26.5, take profit target $30, stop $24, 2.75% yield.

$MU (Micron Tech) Pull back to $30 is an opportunity – FV…

FV=37 on Micron tech.

the DRAM business has become an oligopoly and where before, increasing demand meant increased capacity as there were too many manufacturers – now the pricing power is more under control as supply is better controlled allowing prices to be kept higher.

MU is trading 9x 2014 multiple, with very low implied growth over 5 years implied in the price at $30.
if you missed $CSCO and $HPQ, buy Micron Tech!

Trade:
Buy Here at $30, Take profit target = $36, Stop $26.5

$CSCO – reported good numbers – stick with it for now….

FV=21+6 in CASH = 27.

Yielding just under 3%, it is worth holding on for the yield and potential further upside to $26-27 area for a 25% return if you got in at $21 when i last tweeted this name at the end of March.

Very few OLD tech stocks left now with potential 20% upside and good yields – they have all moved higher following the rotation out of Growth Stocks.

Old tech stocks $MSFT and $HPQ rallying..if you missed these $CSCO may be worth taking a look….

Looks like there is some rotation out of Growth stocks into more safer stocks – which should do well if the broader US economy does well.

2CentView has been bullish in $HPQ since 29 area – as it is cheap and should benefit from a broader US Economic expansion plus cheap way to get into the potential of 3D printing.
FV=36 now with stock 32.5.

$MSFT has also had a nice run, hitting $40 FV=$31 + $9 in cash.

Another name which should do well if the broader economy does well is $CSCO (Cisco Systems).
With $30billion in cash, FV = 22 + 5 (Cash) = 27. At $21 stock yields 3.5%!
Some value stocks stay cheap though especially if management are too slow to take advantage of new markets such as cloud – they just announced a play into Clould – 2 years too late!

However, internet security has big potential and $CSCO should look into entering that business.