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Real-Money Stock Picks / Jordan DiPietro


Subject:  Re: Would You Buy Cisco? Date:  6/29/2011  10:46 PM
Author:  rd80 Number:  4 of 5

No, I wouldn't buy Cisco. In fact, I sold it about a month ago and swapped in to INTC (after writing an article back in Jan concluding that keeping CSCO was the right move - dooh - THAT would have been the time to make the swap).

I agree CSCO looks dirt cheap, but what's on the horizon that's likely to make the stock start climbing? And, does CSCO really have better prospects going forward compared to INTC, MSFT, IBM and other large cap tech peers that also look cheap?

I don't think CSCO will be a big loser, but I don't see what sparks a return to better valuations or why it's a better buy than some other stocks out there. In short, CSCO looks an awful lot like a value trap.

If Chambers manages to get the company back on track, I think there'll be time to jump in and catch the ride.

Maybe I'm not the best person to answer this since I was wrong back in Jan and have generally managed to lose money in tech.

Hope I'm wrong and the pick works out for you.

Fool on!


Disclosure: As mentioned, long INTC. No position in the other stocks mentioned.
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