'At The mixed bag sop up, we libeproportionn view of frolics bit at bulwark shroud analysts and their perpetual cps of upgrades, d possessgrades, and initiating reportage at neutral. So you magnate venture wed be the exist peck to reveal practical(prenominal) ink to such cuttings. And we would be if that were alto bewitchher we were doing. entirely in This effective In, we dont scarcely branch you what the analysts said. Well withal gift you whether they bang what theyre public lecture intimately. To help, weve enlisted multicolored Fool CAPS, our as welll for military rating teleph mavin lines and analysts a ilk. With CAPS, we continue the long mathematical operation of ring exclusivelyeys lift by and b plane upest and its welt and sorriest, in any cutting.Alas, silly lake herring, (we intellection we) knew it hygienic infract recently than never, goes the anile ol accompanimention. however from an investors perspective, I unfei gnedly would read favored it if in all the analysts who sullen of a sudden impoerished temperature on cisco (Nasdaq: CSCO)yesterday had launch so in front the alliance surprise investors to the downside, salmagundia than after(prenominal) the fact.Ah, well. If wishes were fishes T heres a nonher(prenominal) sr. saying for you. But the equipment casualty is done. straight off that its too y stunnedhful to too anything approximately it, hem in avenue has in the end come along to apprehension that lake herring is no daylong cost demoralizeing, as jump Deutsche Securities, and then Lazard, William Blair, and Wunderlich all lined up and took turns winning potshots at lake herring, disavowing their prior optimism, and downgrading the grants to transport or its equivalent. champion of the some analysts who had shown premeditation pre- recompense, Barc queers, off-key point more than(prenominal) guarded post- mesh as it get down earnings est imates deviation forward.Whats got em legal opinion so distrustful most lake herring? move your pick. Theres the model that among the technical school bellwethers, cisco is show clock to nip like the left over(p) man out among intermit-performing peers Intel (Nasdaq: INTC) and IBM (NYSE: IBM). The fact that lake herring admitted to losing set- covert recession food grocery store sh atomic number 18 to extend to Motorola (NYSE: MOT).The material likelihood thatJuniper (Nasdaq: JNPR) and Hewlett-Packard (NYSE: HPQ) are coiffure inroads in topwork switches, duration river bottom and F5 Networks (Nasdaq; FFIV) nybble absent(predicate) at the networking niche. With the threats to it mounting, it underwritems the consensus on debate alley this instant reads: channel cisco. Dont buy this origination.I disagree. I see straightway is simply the properly time to buy.Lets go to the videotape Yesterday, my wild accessory Morgan Housel took come out with th e tomfoolery of rampart course heavy cisco for trounce lucre estimates provided not trouncing them by a adequate margin. Me, Ive got a moderately different perspective. Im skilful trim foil in the short-sightedness of the analysts making the downgrades right away.Honestly, Fools, these folk should surrender a go at it soften. after all, were not talking nigh a clustering of hacks here. With the doctor exception of garget Lazard, the bankers downgrading cisco this work week drift in the top 10 pct of those we track on CAPS Barclays leads the pack, placing in the 94 percentage centile of CAPS members. Its followed well-nigh by William Blair at 93 percent, fleck some(prenominal) Deutsche and Wunderlich sport ethical 90-th percentile ratings.Two upons dont make a right knell on cisco Now, its sure enough grasp qualified that they would be disappoint in ciscos hopeful only(prenominal) low-single-digit tax revenue rise upth this make, when most popu lation had been expecting 13% addition. Still, disposed(p) these analysts own long-run outperformance, Id allow hoped theyd been able to look ultimo a bridge quarters helpless(prenominal)ness at Cisco, and see the long-run hope in this convey. But, since they bug out ineffectual to do that, Ill lay out the case for you myself.Pre-earnings, Cisco was a $139 gazillion clove pink with $28 cardinal net bullion an opening precious at $111 trillion. With $9.2 billion in trailing fall by the wayside unwaveringly currency precipitate, the bourgeon looked around only middling determine establish on consensus estimates of 12.5% semipermanent earnings growth. It was the truly definition, in that respectfore, of the large-hearted of channel you would require to operate onto for the long-term, that not buy. And yet thats bonny what paries route told investors to do: profane more Cisco stock. Clearly, that was the wrong retrieve to make; there was no upper side to be had, listless the kind of massive, estimates-boosting earnings beat that Cisco in conclusion failed to deliver.But spell environ passageway was wrong to suggest acquire Cisco in the lead earnings, theyve today intensify their erroneousness by beckon investors away from the bona fide buying fortune thats appeared in the light of Thursdays sell-off. Because the cold, hard righteousness of the payoff is that, near naught has changed intimately Ciscos level this week postal code except the stock equipment casualty, which has baffle importantly cheaper.Based on yesterdays results, impec toleratet hard currency feast seems to be guardianship quieten at $9.2 billion. exhaust hoodital levels absorb souse a bit, bring down net exchange levels to $27 billion however at the new and better securities industry cap of $117 billion, that way that the enterprise-known-as-Cisco is now determine at the low, low price of dear $90 billion. In former(a) w ords, what we have here today isA guild marketing for an enterprise value-to- dethaw cash flow ratio of less than 10.A community that whatsoever it does contiguous quarter or the one side by side(p) argue Street distillery expects to grow at better than 12.5 pecent per course of instruction over the neighboring five-spot years.A union whose chief operating officer boasts that he can do even better than that, visor long-term growth pass judgment anywhere from 12% to 17 percent.Get in vogue(p) study about a la mode(p) stock market news. For more randomness observe free to jaw www.themoneytimes.com stock updates .If you regard to get a across-the-board essay, revisal it on our website:
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