Fri, Jul. 15, 10:02 AM
- Thomas Lee from Fundstrat Market & Equity Research ("our research process combines both top-down strategy and bottoms-up fundamental views, to develop a roadmap of practical and useful investment insights for our clients") identifies 15 stocks that meet his criteria for his current “highest conviction” strategies, which he calls “laggards become leaders” and “stocks are the new bonds.”
- The following stocks are in 1 of 16 groups that have lagged in the bull market (laggards), and have dividend yield greater than the their long-term bond yield (stocks are the new bonds): APD, CAT, CSCO, CVX, HP, IBM, OXY, PCAR, PG, PX, RL, SLB, T, VZ, XOM.
Fri, Jul. 1, 10:42 AM
- June monthly performance was: -0.43%
- 52-week performance vs. the S&P 500 is: -5%
- $0.11 in dividends were paid in June
- Top 10 Holdings as of 3/31/2016: Public Storage (PSA): 2.03299%, SkyCity Entertainment Group Ltd (OTCPK:SKYZF): 2.02912%, CYS Investments Inc (CYS): 1.99742%, Cisco Systems Inc (CSCO): 1.97543%, Vestas Wind Systems A/S (OTCPK:VWSYF): 1.96004%, Intrum Justitia AB (IJ): 1.9455%, Bezeq The Israeli Telecommunication Corp Ltd (OTCPK:BZQIF): 1.94472%, SSE PLC (OTCPK:SSEZF): 1.93715%, Annaly Capital Management Inc (NLY): 1.93635%, Spark New Zealand Ltd (OTCPK:NZTCF): 1.92084%
Tue, Jun. 28, 11:01 AM
- In a growing market, Cisco Systems (CSCO +1.2%) is boosting its cloud security bona fides with an agreement to buy Massachusetts-based CloudLock, for $293M in cash and equity.
- The deal also includes retention incentives for CloudLock's employees, which number about 130.
- Privately held CloudLock had raised about $30M in funding and posted revenue of $13.2M last year.
- The deal's expected to close by November.
Thu, Jun. 23, 5:50 PM
- The International Trade Commission has upheld a February finding that Arista Networks (NYSE:ANET) infringed on three of Cisco Systems' (NASDAQ:CSCO) patents, handing Cisco a key win.
- ANET is down 3.8% after hours.
- The commission also recommended an import ban on Arista's infringing products. The patents in question have to do with managing and securing communications networks.
- While the ITC has granted the import ban, it may take resolution of the two companies' ongoing countersuits to settle any damages.
- An administrative law judge had previously found that Arista had infringed Cisco's '537, '592 and '145 patents.
Wed, Jun. 15, 7:48 AM
- There are "modest downside risks" to consensus estimates, says analyst Simona Jankowski, downgrading Cisco (NASDAQ:CSCO) to Neutral from Buy. She also cuts the PT to $32 from $35 (last night's close was $28.96).
- Jankowski expects earnings growth to slow though fiscal 2018 as server share gains level off and buybacks slow.
- Shares -2% premarket to $28.36.
Mon, Jun. 6, 5:16 PM
Thu, Jun. 2, 10:56 AM
- Cisco (CSCO +0.4%) is partnering with IBM (IBM +0.2%) to offer joint analytics services for the data generated by IoT devices. IBM's Watson IoT and business analytics offerings will be used to provide advanced data analysis, and Cisco's edge analytics solution to "more deeply understand and act on critical data on the network edge."
- Cisco/IBM say they're targeting "companies operating on the edge of computer networks such as oil rigs, factories, shipping companies and mines, where time is of the essence but bandwidth is often lacking." Bell Canada is an initial partner. The tie-up follows the June 2015 launch of Cisco's end-to-end IoT System, and its $1.4B+ February deal to buy major IoT service provider Jasper Technologies. Amazon, Microsoft, and Google are also going after the budding market for cloud-based IoT services.
- Separately, Cisco has once more restructured its engineering leadership. David Goeckeler, the SVP in charge of Cisco's security products/services, is now also in charge of networking hardware. And three high-profile engineers - Mario Mazzola, Prem Jain, and Luca Cafiero - have been moved to "advisory" roles.
- The engineers were helping run Insieme Networks, a data center switch/SDN startup Cisco funded and later acquired via its traditional "spin-in" strategy. New CEO Chuck Robbins has suggested he's not a fan of spin-ins.
- Two months ago: Cisco restructures 25K-employee engineering unit
Thu, Jun. 2, 9:03 AM
- May monthly performance was: +1.17%
- 52-week performance vs. the S&P 500 is: -7%
- No dividends were paid in May
- Top 10 Holdings as of 3/31/2016: Public Storage (PSA): 2.03%, SkyCity Entertainment Group Ltd (OTCPK:SKYZF): 2.03%, CYS Investments Inc (CYS): 2.0%, Cisco Systems Inc (CSCO): 1.98%, Vestas Wind Systems A/S (OTCPK:VWSYF): 1.96%, Intrum Justitia AB (IJ): 1.95%, Bezeq The Israeli Telecommunication Corp Ltd (OTCPK:BZQIF): 1.94%, SSE PLC (OTCPK:SSEZF): 1.94%, Annaly Capital Management Inc (NLY): 1.94%, Spark New Zealand Ltd (OTCPK:NZTCF): 1.92%
Thu, May 19, 12:05 PM
- Cisco Systems (NASDAQ:CSCO) is up 3.2% following a strong fiscal Q3 where it strengthened gross margin, and a rack of analysts bumping price targets today.
- More than a half-dozen firms raised targets. Drexel Hamilton (Buy) has one of the highest targets, at $36 (implying 31% upside from today's raised price of $27.58).
- Robert Baird reiterated its Outperform rating and raised its target to $32 from $30, viewing the company as "better positioned than many investors fear relative to public cloud and software-defined solutions. Product gross margin was again very solid even after adjusting for the extra week. CSCO is our best value idea for 2016."
- UBS worried about product softness, but noted that linearity returned to normal despite a weak macro environment. "Product declines in switches (-3%) and routers (-5%) and meager 1% growth in data center were concerning, but eased by double-digit order growth in data center switching." The firm's Steven Milunovich reiterated a Buy and bumped his price target to $30 from $29, calling Cisco the best-positioned legacy vendor and expected growth at the low end of a long-term 3-6% goal.
- Also raising targets: Barclays (Overweight), to $31 from $29; Credit Suisse (Underperform), to $24 from $22; RBC Capital (Outperform), to $33 from $31; BMO Capital Markets (Outperform), to $32 from $30.
- Now read Cisco: The Secret Sauce Is Services And Software »
Wed, May 18, 5:38 PM
Wed, May 18, 4:39 PM
- Boosting Cisco's (NASDAQ:CSCO) FQ3 EPS: Non-GAAP gross margin was 65.2%, up 100 bps Q/Q and 60 bps Y/Y, and above guidance of 62.5%-63.5%. FQ4 GM guidance is at 63%-64%.
- Top-line performance: Product revenue rose 1% Y/Y to $8.9B. Services revenue (lifted by Cisco's efforts to drive a mix shift towards services) rose 11% to $3.1B. Americas revenue +4%, EMEA -2%, Asia-Pac +10%.
Switching product revenue -3% to $3.4B, routing -5% to $1.9B, collaboration +10% to $1.1B, data center (UCS server) +1% to $811M, wireless (Wi-Fi-driven) +1% to $615M, service provider video (excludes the divested set-top unit) +18% to $468M, security (lifted by both M&A and organic growth) +17% to $482M.
- Financials: Operating expenses rose 4% Y/Y to $4.2B (35.2% of revenue). $649M was spent to buy back 27M shares at an average price of $24.08. the deferred revenue balance (lifted by software subscriptions and service contracts) rose 8% to $15.3B. Cisco ended FQ3 with $63.5B in cash/investments ($6.3B in the U.S.) and $28.6B in debt.
- CSCO +5.2% after hours to $28.10. The 52-week high is $29.85.
- Cisco's results/guidance, earnings release
Wed, May 18, 4:08 PM
- Cisco (NASDAQ:CSCO): FQ3 EPS of $0.57 beats by $0.02.
- Revenue of $12B (-1.2% Y/Y) beats by $30M.
- Expects 0%-3% Y/Y normalized FQ4 revenue growth (excludes Cisco's divested set-top business) and EPS of $0.59-$0.61. Consensus is for a 3.3% official revenue decline and EPS of $0.58.
- Shares +4.5% after hours.
- Press Release
Tue, May 17, 5:35 PM
Fri, May 13, 3:14 PM
- A shift to cloud services (and lower-cost hardware in data centers) isn't good for Cisco Systems (NASDAQ:CSCO), JPMorgan says in a note.
- Data infrastructure spending will fall at 2% annually from 2016-2020, says analyst Rod Hall, but workloads are moving at a faster rate to infrastructure-as-a-service providers like Amazon, Microsoft and Google.
- “A near-tripling of public cloud workloads represents a monumental architectural shift, which shows no signs of abating and is likely to create a major ripple effect across the entire technology landscape,” he says, making up a material earnings risk for the world's Ciscos.
- "Though companies like Cisco focus on the increased bandwidth required for big data," he says, "they miss the fact that this inevitably drives companies to want to deploy commodity (data center) solutions faster in our opinion.”
- Now read Retired Investors Should Give This Blue-Chip Technology Stalwart A Close Look »
Tue, May 10, 1:50 PM
- Growth stocks have outperformed value stocks each year since 2007, but value investors are often rewarded after such periods. C.T. Fitzpatrick, the CIO of Vulcan Value Partners and the manager of Vulcan Value Partners Fund (MUTF:VVPLX), who has beaten the S&P 500 and its peers every year for the past five years gave his 4 value picks in an interview with Barron's.
- Oracle (NYSE:ORCL) is his top pick. Oracle and SAP (NYSE:SAP), both are leaders in the big enterprise market, but Oracle is in a better position with its applications plus database products along with being ahead in converting its customers to the cloud.
- National Oilwell Varco (NYSE:NOV) is a value pick since it generated tremendous free cash flow despite a poor quarter.
- Anthem (NYSE:ANTM) is a new addition since its business model is well-suited for the Affordable Care Act. Fitzpatrick believes that the company's stock price doesn't reflect the fundamentals.
- United Technologies (NYSE:UTX) gets interest as it has generated high free cash flow despite its bottom line being hurt by the strong dollar. Their accretion of cash is helping return on capital thereby making it a value pick.
- His top 10 holdings as of Dec. 31 are Oracle, Parker Hannifin (NYSE:PH), National Oilwell Varco, Franklin Resources (NYSE:BEN), Discovery Communication (NASDAQ:DISCK), Swiss RE AG, MasterCard (NYSE:MA), Cisco Systems (NASDAQ:CSCO), Anthem and Boeing (NYSE:BA).
Mon, May 2, 7:56 AM
- April monthly performance was: -0.42%
- $0.06 in dividends were paid in April
- Top 10 Holdings as of 3/31/2016: Coca-Cola Co (KO): 4.27%, Microsoft Corp (MSFT): 3.51%, Altria Group Inc (MO): 3.33%, Apple Inc (AAPL): 3.31%, AbbVie Inc (ABBV): 2.67%, International Business Machines Corp (IBM): 2.38%, McDonald's Corp (MCD): 2.09%, Cisco Systems Inc (CSCO): 1.95%, 3M Co (MMM): 1.84%, Home Depot Inc (HD): 1.81%
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking products and services related to the communications and information technology industry. It provides a broad line of products for transporting data, voice, and video within buildings and across campuses. The... More
Industry: Networking & Communication Devices
Country: United States
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