Ticker Symbol: CSCO

Background of Cisco Systems operations: Cisco Systems, Inc designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides a line of products for transporting data, voice, and video within buildings. Its products are designed to transform how people connect, communicate, and collaborate. Its products are installed at enterprise businesses, public institutions, telecommunications companies, commercial businesses, and personal residences. It has five segments: United States and Canada, European Markets, Emerging Markets, Asia-Pacific, and Japan. The Emerging Markets theater consists of Eastern Europe, Latin America, the Middle East and Africa, and Russia and the Commonwealth of Independent States. In September 2010, the Company acquired Arch Rock Corporation. In April 2011, it acquired newScale Inc.

My Thoughts: This is a great buy, with a near perfect entry point. My portfolio is strongly based off of stocks that have really good entry points. I check to make sure that they have strong fundamental value from examining their financial statements and then make an educated decision on how the market will fair with this company. After I have done the basic run down and still feel comfortable with their company, then I will look at the price action on the stock. As for Cisco Systems, it closed the day at $16.19. From past price actions, you can tell whether this is a good entry point or not. The entry point, to be able to say that it is good or great depends on what you are planning on doing with the stock. Are you planning on shorting it, selling an option for it, or just buying and holding for the long-term.

Long-Term (Strong Buy): So, if you are planning on buying this stock, for the sole purpose of holding it for the long-term, then I would suggest this as a “strong buy.” This company is backed by strong financials, in an industry which will be around for a long time. It’s technology is being implemented in businesses all around the world. It is even merging into the cell phone business and also helping with the fad of template technology like that of the Ipad and Motorola’s version as well. From my perspective, this company is in a great spot for long-term growth, although it will still probably experience some volatility within its price action. (Also, just started to issue dividends to it’s shareholders!)

Selling an Option: If you are looking into CSCO and are thinking about the possibility of buying or selling an option, then the support and resistant levels are provided below. This stock is going to have a very hard time getting below $14.30. To add to that, we have a strong resistant level higher in the price action, which is going to be pretty hard to break through at $22.50. This information should be useful, when considering your calls/puts, but I am not going to condone either of them at this time, for I can’t accurately predict what is going to happen in the short-term action of the stock price.

My Rating (with current price): 8 out of 10

My Rating: 10 out of 10 if in the $14.30-14.80 Range MUST BUY!

MSN Money’s Rating: 7 out of 10

Cisco Systems 2010 Annual Report:

https://materials.proxyvote.com/Approved/17275R/20100920/AR_67529/HTML2/default.htm



I hope that everyone can get some use from this information! I have also attached a link of Cisco’s 2010 annual report, which will show their company’s capital structure and give you a better understanding for their earnings. Please feel free to give me your opinion of this stock for I am always curious as to what others think. Also, I am very open to any constructive criticism which you might have for my analysis of this stock.

Thanks for reading!

Caleb M. Meador



