CSCO - Cisco Corp.

[CSCO] Cisco Systems stock - Hot stocks to buy entry price: $17 - $18.5

• Risk level:  3
• Profit potential: 6
• Price Target = $25
• Cisco systems is rated a minimal risk stock

We have a special stock that we are adding to our Hot Stocks to Buy portfolio. Cisco Systems will be added to the portfolio as we believe this to be the best positioned stock to own in the technology hardware arena. Cisco as with the rest of the market has been hit with the financial meltdown of 2007. We feel that Cisco was unjustly taken down with the rest of the market and is on the right path to recovery. After hitting a low of $13.62, Cisco has bounced back quite nicely to $18 a share. We expect the stock to continue it’s upwards trend to approximately $25 by the end of the year. The following are highlights of recent events affecting Cisco:

Analyst recent upgrades and downgrades:

• March 11, 2009 – Wedbush Morgan Initiated at Hold
• March 2, 2009 – Argus Upgraded from Hold to Buy
• Feb 3, 2009 – Stifel Nicolaus Upgrade from Hold to Buy

Future stock events:

• May 6^th, 2009 – Earnings Announcement

Stock positives:

• Cisco is leveraging India’s work force to lower cost on engineering help.
• We are expecting Cisco to post good numbers on their earnings announcements coming up on May 6^th as their projections have been lowered dramatically.
• EPS for the next 5 years is expected to be about 8.6%
• Microsoft’s release of Windows 7 in the fourth quarter of 2009 will add a boost to technology stocks. This will also lead to infrastructure changes in many organizations.
• Obama’s plan to pump money into the education technology field will lead schools to buy more technology.

Hot Stocks to Buy recommends taking a medium holding in Cisco systems as it is a stable investment with strong growh potential.  Cisco’s stock price may not rise 20% on a daily basis but it’s gradual increase will be realized at the end of the year.  Our stock price target on Cisco systems by years end is $25.  We recommend you perform your own due diligence prior to making any stock purchase.