ERICOPOLY Posted May 17, 2011 Share Posted May 17, 2011 I'm thinking about selling my common shares (to lock in the tax loss) and buying LEAPS I believe that's a wash sale, not locking in a tax loss. Link to comment Share on other sites More sharing options...
mevsemt Posted May 17, 2011 Share Posted May 17, 2011 Well according to Wikipedia you're right ERICOPOLY - thanks for the heads up. However, even though I'd no longer get the benefit of the tax loss I'm still thinking about trading out the common shares for LEAPS. Basically, my thought is if a stock goes up and you own LEAPS/Options then it might make sense to sell the LEAPS/Options and buy the common. Conversely if the stock goes down and you own the common then it might make sense to sell the common and buy the LEAPS/Options. Does that make sense? Link to comment Share on other sites More sharing options...
Myth465 Posted May 17, 2011 Share Posted May 17, 2011 Humm I thought it wasnt a wash. I do it all the time. When my leaps go down, I sell them and buy deeper down in the money. I will have to research this. Also this is getting Interesting, Berkowitz has the resources to verify that Cisco moat / market share is sustainable. All roads point to large caps. I hate this whole subtract the cash game, hate that cash is largely trapped overseas, hate the fact that its tough to see where these are going, but its the only game in town nowadays it seems. Getting more interesting by the day with Paulson in HP, HP getting pounded afterhours (LOL), and now Berkowitz in Cisco. Link to comment Share on other sites More sharing options...
dcollon Posted May 24, 2011 Share Posted May 24, 2011 Thought some of you might enjoy this http://www.theregister.co.uk/2011/05/23/cisco_dell_merger_contemplation/print.html Link to comment Share on other sites More sharing options...
beerbaron Posted May 24, 2011 Share Posted May 24, 2011 ]I just bough some shares of Cisco today. The rationale was that after reviewing all the cheap teck stocks it was the one where the outlook could be the longest. The switching side of the business will continue to have tailwind for some time 10-15 years easily. Cisco is a dominant player and even if China's knockoff would bang on doors I don't believe any serious company is willing to risk it's network infrastructure yet. Plus there is many patents still active on the Cisco portfolio. It's not like the american cars in the 80s... Cisco is still offering a quality product that meet their customer's needs. They have tons of money on the balance sheet that they can't bring back to the USA. I can't see how in the last 18 month of his presidency would allow to leave off the table a tax lift on foreign cash to try to boost the economy. Obama will need all it's aces ... and he will use them! Regards BeerBaron Link to comment Share on other sites More sharing options...
ERICOPOLY Posted May 25, 2011 Share Posted May 25, 2011 Well according to Wikipedia you're right ERICOPOLY - thanks for the heads up. However, even though I'd no longer get the benefit of the tax loss I'm still thinking about trading out the common shares for LEAPS. Were they to be fair about things, there should also be a "wash buy" too, right? Like, if I sell for a gain and buy it back within a month, I am then not realizing a gain and thus no tax due (yet). It's these one-sided rules that makes me want to not be a team player -- so I try to minimize my tax burden even though I too use public services like roads and schools. Laying out fair rules in the first place, my attitude may be different. Link to comment Share on other sites More sharing options...
Myth465 Posted June 1, 2011 Share Posted June 1, 2011 Perhaps CSCOs moat is stronger then I thought. I dont see anyone trying too many new things with stuff like this going on. http://finance.yahoo.com/blogs/daily-ticker/cyber-wars-heat-lockheed-martin-pbs-latest-hit-165137382.html;_ylt=AtnYp26FqNGGPX1Wcy0Shpgp2YdG;_ylu=X3oDMTBvdDRyaDhmBHBvcwMxBHNlYwNNZWRpYUJsb2dJbmRleA--;_ylg=X3oDMTFvcGs0cnBnBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANibG9nBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3 Link to comment Share on other sites More sharing options...
beerbaron Posted June 1, 2011 Share Posted June 1, 2011 Rules of network design. Rule 1 : Don't mess with security Rule 2 : Don't forget rule 1 By the way. DOS attacks can hurt any servers/link, there is very little providers can do to protect against them. It's not hacking as it does not steel information. BeerBaron Link to comment Share on other sites More sharing options...
Myth465 Posted June 1, 2011 Share Posted June 1, 2011 This and Berkowitz got me thinking about Cisco. I dont have the IT knowledge to really analyze the moat, but after thinking about it a CTO or CIO probably isnt going to risk his job to save a few bucks on network equipment. http://www.gurufocus.com/news/134752/the-boulevard-of-broken-charts-cisco Link to comment Share on other sites More sharing options...
rranjan Posted June 1, 2011 Share Posted June 1, 2011 My education and earlier background was in computer science. It really surprises me whenever I hear that CSCO or MSFT moat is not big enough and thats the reason not to invest. Yes, they are getting challenged but at current price, they don't need to do anything more than what they have been doing to be a reasonable investment. In my opinion, their moat is deep enough to allow anyone to make reasonable projections of their businesses for atleast next 4-5 years. I don't think HPQ and DELL moat are anywhere close to MSFT/CSCO but they might be decent choice at current price. In general, large techs are selling at decent price and some of them do have enough moat. Due to being in tech field , the moats are not huge enough to buy and come back after 20 years. But for the next 3-5 years, reasonable assumptions for some selected companies should work out fine. Link to comment Share on other sites More sharing options...
rjstc Posted June 1, 2011 Share Posted June 1, 2011 My education and earlier background was in computer science. It really surprises me whenever I hear that CSCO or MSFT moat is not big enough and thats the reason not to invest. Yes, they are getting challenged but at current price, they don't need to do anything more than what they have been doing to be a reasonable investment. In my opinion, their moat is deep enough to allow anyone to make reasonable projections of their businesses for atleast next 4-5 years. I don't think HPQ and DELL moat are anywhere close to MSFT/CSCO but they might be decent choice at current price. In general, large techs are selling at decent price and some of them do have enough moat. Due to being in tech field , the moats are not huge enough to buy and come back after 20 years. But for the next 3-5 years, reasonable assumptions for some selected companies should work out fine. I agree. You should also post this thought on the MSFT threads in General Discussion. Link to comment Share on other sites More sharing options...
schin Posted June 4, 2011 Share Posted June 4, 2011 I'm in government contracting. Cisco is the router of choice. Has anyone seen a Leveno laptop used in the government? Or a Japanese car used by the Secret Service or any federal/state organization. It's buy american. Also, with HP/printing companies putting all this secret encryption in their printouts, I doubt the government wants to depend on a foreign company with their strategic information architecture... which can pass info to China, Russia or some enemy of the State. Link to comment Share on other sites More sharing options...
beerbaron Posted June 5, 2011 Share Posted June 5, 2011 I was discussing with a friend in charge of implementing the networks of a large cable operator and he was stating two interesting things. First, he says nobody in a developed country would buy a Chinese knock-off yet. The cost of downtime is huge and the customers expect 99.9999% uptime. The Chinese companies have won some big contracts in developing countries tough. IPV6 will need to arrive very very soon, there is just no more IP addresses and it's becoming an ever increasing concern. Network operators have postponed it for the last 10 years but we are now at the river there is no more postponing. IPV6 would not requireme that much new server but a lot of software upgrades, which Cisco is really strong with. They are earning 60% gross margin on this service and it's likely that for the next few years that part will grow faster then the equipment side. BeerBaron Link to comment Share on other sites More sharing options...
tombgrt Posted June 7, 2011 Share Posted June 7, 2011 -3% in a slightly positive market today. I am looking into this but have very little insight in tech. I am scared of management (big stock options, possibility of stupid acquistions because of amount of cash, see history...) and deterioration of margins but current valuation even gives some MOS for those factors. I do believe earnings are of more quality than those of RIMM for example but the amount of cash is something I like to discount a lot. Link to comment Share on other sites More sharing options...
beerbaron Posted June 7, 2011 Share Posted June 7, 2011 I do believe earnings are of more quality than those of RIMM for example but the amount of cash is something I like to discount a lot. Both are different tough, one is a value play (CSCO) wile the other (RIM) is an asymetric risk/reward. BeerBaron Link to comment Share on other sites More sharing options...
TorontoRaptorsFan Posted June 10, 2011 Share Posted June 10, 2011 So it looks like more and more value fund managers are piling onto the Cisco bandwagon. Tweedy Browne's thoughts on Cisco http://blogs.barrons.com/focusonfunds/2011/06/10/tweedy-browne-betting-cisco-will-hold-up-against-competition/ Bruce Berkowitz at the Morningstar Conference http://blogs.barrons.com/focusonfunds/2011/06/09/fairholmes-berkowitz-cisco-important-player-in-americas-continued-growth-still-bullish-on-goldman/?mod=BOLBlog Eddie Lampert has added another 873,764 shares to his existing holdings and as of March 31, 2011 was up to 7,313,484 shares. Barton Biggs says Cisco's way too cheap http://www.bloomberg.com/news/2011-06-07/biggs-avoiding-financials-says-cisco-intel-are-way-too-cheap-.html Link to comment Share on other sites More sharing options...
DCG Posted June 10, 2011 Share Posted June 10, 2011 I don't love the way this company is run, but the market is treating it like the company is going out of business soon. Link to comment Share on other sites More sharing options...
ageofsocrates Posted August 17, 2011 Share Posted August 17, 2011 Hi everyone, Cisco was bought by Bruce Berkowitz in the first quarter and sold in the 2nd quarter...rather large stake (38 million). http://www.bloomberg.com/news/2011-08-15/fairholme-s-bruce-berkowitz-adds-to-bofa-holdings-sells-cisco-stake.html Usually, what can be reasons for such a sell-off? Redemptions? Appreciate any thoughts on this... Link to comment Share on other sites More sharing options...
beerbaron Posted August 17, 2011 Share Posted August 17, 2011 Berkowitz thesis did not change it's thesis on Cisco, he just better risk/returns available elsewhere. BAC and C seem to be part of it. BeerBaron Link to comment Share on other sites More sharing options...
bargainman Posted August 17, 2011 Share Posted August 17, 2011 Well looking at his last filing which was for April http://www.sec.gov/Archives/edgar/data/1096344/000119312511111826/dnq.htm it lists the total of the FAIRX fund at: 20,024,333,240. Just over 20 billion. Morningstar currently lists his assets at 13.4 billion.. I'm not sure where M* gets it's date but I'll assume it's more up to date. As such he had to liquidate even more since then. I guess since Cisco isn't in that sec listing he probably didn't liquidate due to redemptions.. But one can only imagine what his current fund makeup looks like.. Link to comment Share on other sites More sharing options...
QLEAP Posted September 14, 2011 Share Posted September 14, 2011 Cisco is taking the fight to Juniper - http://www.overpromisesunderdelivers.net Link to comment Share on other sites More sharing options...
TorontoRaptorsFan Posted September 16, 2011 Share Posted September 16, 2011 I love the aggressive stance Cisco is taking. It's about time. With HP going in directionless motions and Juniper being the tiny competitor that it is I'm really liking Cisco's latest moves! Link to comment Share on other sites More sharing options...
Palantir Posted September 14, 2012 Share Posted September 14, 2012 Anyone taken a second look at this over the past year? It seems their operating metrics have improved, such as RoA and OCF. Unfortunately though I'm not knowledgeable about their business. Link to comment Share on other sites More sharing options...
mikazo Posted October 27, 2012 Share Posted October 27, 2012 Anyone taken a second look at this over the past year? It seems their operating metrics have improved, such as RoA and OCF. Unfortunately though I'm not knowledgeable about their business. I had actually come searching for this thread so that I could post a news article about Cisco. Didn't know this thread existed.. haha. But as it so happens, I have done some writeup on Cisco relatively recently. http://startingat22.blogspot.ca/2012/05/stock-analysis-cisco-systems-inc.html http://startingat22.blogspot.ca/2012/05/stock-follow-up-cisco-systems-inc.html As for the news article, apparently Chinese telecoms are stopping usage of Cisco products. I suspect this has more to do with the US's position on Huawei products, but it could still have a significant negative impact on CSCO. http://www.morningwhistle.com/html/2012/Company_Industry_1026/214830.html Link to comment Share on other sites More sharing options...
mikazo Posted October 27, 2012 Share Posted October 27, 2012 Another article about the high cost of Cisco networks: http://www.networkworld.com/news/2012/102512-cisco-csu-263711.html?hpg1=bn Link to comment Share on other sites More sharing options...
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