There was no use talking
There was nothing to say
As the band began to play and play
--The Hooters
Initiated a small position in Cisco Systems (CSCO). A few days back the stock was splattered after dialing back future expectations as part of their earnings report.
Minyanville's Fil Zucchi sagely observes that CSCO may reflect decent value here. It's throwing off nearly $10 billion in free cash flow and has about $15 billion in net cash on the balance sheet. At current prices, CSCO's market cap is about $109, making enterprise value ~$94 billion. Enterprise value:FCF less than or equal to 10 feels like good value to me...concur, Fil.
CSCO joins a snivlet of Microsoft (MSFT) added a few months back as the sole stocks under management right now.
positions in CSCO, MSFT
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1 comment:
The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cash flow is reality.
~Chris Chocola
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