In October 2012, Inmarsat Plc and Cisco Systems, Inc. announced the creation of a unique long-term alliance that will enable Inmarsat to deliver advanced services, from applications to business collaboration and video to multimedia content over Inmarsat’s new high-throughput satellite broadband network, Global Xpress (GX).
In October 2012, The University of Waterloo and Cisco Systems, Inc. announced an agreement to establish a Cisco Systems Research Chair in Smart Grid, which would promote, support, and lead research, development and innovation within the use of technologies and solutions for smart power grids.
In November 2012, Cisco Systems, Inc. and Ukrtransgas AC discussed joint strategic initiatives and signed a memorandum of understanding. The MoU stipulates a working group to be formed to study previous Cisco projects aimed at developing corporate telecommunications for gas transmission companies, designing a network platform for an advanced system of transporting gas, improving production, and introducing innovative equipment, as well as ready-made solutions to enable profitable business.Earnings Guidance In its webcast, Cisco forecast revenue to grow between 3.5% – 5.5%. Earnings will be $0.47 to $0.48 per share, while gross margins will be between 61% -62%. Competitive Analysis To get a sense of Cisco’s cheap valuation, it is useful to compare Cisco’s Price of Profitability (“POP”) to other companies, using Kapitall tools. Note the change in POP from 2011 – present:
Conclusion: Cisco’s P/E is 11.9, and its POP is 11. Investors are paying slightly more than the 1:1 ratio, which implies that there is moderate growth expectation for this company. Investors are paid $0.5593 in dividends per share, or 2.95% yield. Cash balance continues to expand every year, while accounts payable and accrued expenses remain steady. Cisco shares were cheaper before the rally, but at its existing price, it remains less expensive than competitors. Shares could pull back in the near-term should market sentiment turn negative. At that time, investors are better-positioned to look at Cisco at a greater discount. Written by Chris Lau . To interact and discuss these picks or picks of your own with users, attach your watch list or portfolio in a message to your friends on Kapitall. To connect with users on the leaderboard: from your tool bar, select Get Connected -> Top Kaptallists. Members on Kapitall earn free points, and even more points with every Kapitall Generation trade. These points may be redeemed at the Kapitall store .