US Investment update: Cisco

    A little concerned about the Investor relations of Cisco, one of my US purchases. The company's quarterly reporting (last week)again seems to have been poorly received and the share price has again been punished. 
    That's 2 quarterly reports in a row that this has happened and the company seems unable to manage the high expectations of markets and investors.
    This time the company reported revenue growth of 6% over the same period a year ago and despite the statement that things panned out as expected, analysts were expecting 13% and have duly punished the share price with a drop of more than 10%.
    The fear is that Cisco, despite being the market leader in the networking equipment required to keep the internet up and running, may be under pressure from competitors which could subsequently impact margins.
    With the growth of the smart phone market, and the related data traffic, I am still hopeful that the market for the company's products is significant particularly with the many reports that networks are slow and creaking under the exponential growth in data traffic. 
    On the upside there is anticipation that Cisco will start to pay a dividend this year which could support the share price but being bought for growth I will have to keep an eye on the company and its apparently naive investor relations particularly for any confirmation that margins and market share are under pressure.

    Cisco @  $18.71, -11.6% v.original investment (incl. exchange rate impact)

    mercurynews.com: Cisco Systems: Earnings beat expectations, but stock slides after hours 

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US Investment update: Cisco


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