Friday, February 15, 2013

More on CISCO

Cisco is one of my top stocks I own. It has been doing good due to the right timing to buy it. Here are my two cents.

* Cisco accuses China with no valid arguments on the security of data passing Chinese routers (about 20% already). As a result, Chinese government limits its expansion in China. It is a case of the US sales force does not care about their own sales force in China.

* They do not have the state-of-the-art products such as G4 for LTE by the top 3 companies. However, they had a good opportunity to buy ALU when ALU was at $1 with a lot of cash they are holding. They did not and missed the opportunity. I also own ALU, but the ratio is about 5 to 1 (weighing high with Cisco).

They accused Huawei for stealing their products and now some Huawei's products are more advanced than Cisco. The stealer is better than the stealee. If the company welcomes others to steal their secrets with open arms, its management cannot be that good.

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