Scott Waxler Blog | A Quickie With With Cisco Systems | TalkMarkets
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I manage Wax Ink.net, an equities valuation company not licensed or registered with any government agency, producing equities valuation reports for about 300 public traded companies annually. These valuation reports are intended to assist individual investors with their decisions regarding ...more

A Quickie With With Cisco Systems

Date: Monday, February 18, 2019 5:40 AM EDT

I could waste a lot of your time with graphs, charts, and other assorted worthless information all intended to show you that I know something about something when it comes to this company, but the truth is, I don't know squat about it. My intent is to provide you with a brief overview of the company's various valuations so you can determine if you have any investment interest.

What They Do
Cisco Systems designs and sells network switches and routers, data centers, wireless networking equipment, security components, VOIP, servers, and workstations. Industry peers include HP, Inc., Alcatel Lucent, Juniper Networks, Inc.

Short-Term Target
For the very short term investor, my short-term target for the stock is $49.06, with an initial trailing stop set at $48.69. With a current price of $49.43, upward price movement will find no resistance, while downward price movement will find support at $49.83 and at $47.55 with final support found at $46.49.

Momentum Target
For the momentum investor, my momentum target for the stock is $1. Momentum targets are determined by overlaying a company's most recent annual EPS, its year-over-year earnings growth, and the current yield of a 10-year treasury. Momentum investing often requires investors to trade in stocks that have already enjoyed significant gains while making no allowances for overall market corrections or the sustainability of a company's earnings.

Growth Target
For the growth only investor, my growth target for the stock is $49. Growth targets are determined using a company's year-over-year earnings growth, year-over-year PE growth, and year-over-year price growth.

Fair Value Investing
Fair value investing, more commonly known as value investing, requires investors to consider a company's overall financial condition including past and future earnings growth, free cash flow, both book and tangible book values, net current asset value, and many other valuation metrics. For many fair value investors, the minimum required hold is five (5) years. For the fair value investor, my fair value estimate for the stock is $15.

Prior Average Valuations
My average valuation for the prior five year period of FY 2013 through FY 2017 is $43.77. Earnings during that time period averaged $1.99 per year.

There you are, as promised, short and to the point.

Wax

I am not a licensed or registered investment professional, nor am I qualified to provide investment advice. I also hold no shares of the stock mentioned in this report.

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