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<<Cisco -- According to my calculations from the most recent 10Q, they pass all the numerical CK criteria, other than the leveraged flow ratio (which they just miss).

Gross Margin -- 65.4%
Net Margin -- 14.1%
Leveraged Flow -- 1.31
Unleveraged Flow -- 1.31
Cash/Debt -- NO Long-Term Debt

They do fall short on consumer mindshare as consumers generally do not buy their products. But, they seem to have great mindshare among their core customers. Plus, everything I read makes it seem as if they are really becoming the dominant player in the networking industry. >>

The key word to describe Cisco in networking is "gorilla", and I'll be writing all about that this coming week. The thing that really impresses me about Cisco is the awesome growth that is projected for the company given its great CK credentials (Zack's consensus 5-year growth estimates are 29.7% per year). This makes it too good a company to pass up. As I noted, it was far and away my #1 choice for the eight pick for the eighth selection for the CK Portfolio.

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