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ddines
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I am a technology industry analyst for ACG Research. We specialize in telecom service provider industry. I cover video infrastructure and services in detail, including: set top boxes, packet video infrastructure (routers, cable modem termination systems) and pay TV, over the top (OTT) video and... More
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  • Still Bullish on Cisco 0 comments
    Aug 24, 2011 1:42 PM | about stocks: CSCO, JNPR, ALU
    Back in April I posted a blog on my own blog account about how bullish I was on Cisco in the long term.  (I wonder why I forgot to post it here at Seeking Alpha in the first place).  This was during a time when it seemed that everyone was dumping on them and fearing that they were on a permanent downward slide.

    The essence of what I said was that Cisco would address the problems and get back on track within several quarters.  A company that strong and with such a commanding lead in its markets was not going to lose its lead that suddenly and not with out a figiht.  I was right in that they admitted their mistakes and addressed many of the problems they faced.  My opinion is that their biggest issue was self inflicted with the management by committee with little accountability or abiilty to act quickly.  My post gave them 2 to 3 quarters to get it straightened out and it seems that they are well on their way, and ahead of my prediction. 

    Cisco seems nicely positioned for the continue growth in internet traffic caused by the craze over OTT video (Netflix and Hulu) and iPads.  The upsurge in traffic is creating much greater demand for its core products by service providers.  Additionally, Cisco is positioning itself as the leader in IP video delivery and it has the juice and product depth to pull it off.

    I do not believe that Cisco is out of the woods yet - it still faces major issues, fierce competition from Juniper, Alcatel Lucent and Huawei, and has more touch decisions on which businesses to keep.  However, over the long term, I do not see any reason why Cisco should not continue to dominate is core markets.
    Themes: Video, OTT, iPad, tablets Stocks: CSCO, JNPR, ALU
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