Cisco Systems Inc. (CSCO): Cisco Returns
Cisco has always been one of my favorite technology companies. During the dotcom days, CSCO was the Google (GOOG) of today. With market capitalization to the moon, this stock was the one to own. To put it into perspective, Cisco market capitalization over took Microsoft for a short period during the hay days of the internet bubble. Since the dotcom bust of 2000, Cisco has been has been struggling to find its way back.
The year 2006 could very well be the turnaround year for this technology giant as the company has been beating earning expectation the past two quarters. The success has driven the stock from the low 20s to around $27/share. The question is no longer whether to invest, but at what price. Given the stock have recently moved upward this quickly, it would be unwise to jump in at the high end of its 52 week range. My recommendation is to be patient and buy on weakness only. In my view, an entry price of $24/share would be ideal.
