Friday, March 10, 2006

Can Cisco Rediscover Its 'Growthiness'?

Taking a page from the Colbert Report, Amanda Cantrell writes on CNN/Money:

Like fans of "The Sopranos," Cisco investors have waited a long time for their faith to be rewarded.

Shares of Cisco, the biggest manufacturer of Internet gear, were stuck in a rut the past two years while the stocks of other equipment makers rallied. The company, which thrived during the Internet boom of the late 1990s, has been dogged by the problem of slowing growth that has troubled other tech stalwarts like Dell and Intel.

But the stock's bounced back in 2006 -- up nearly 20 percent on the back of last month's strong earnings report and forecast for the current quarter.

There is also excitement about the company's move into new growth areas such as the Internet phone, home networking and security markets. Cisco recently completed its $6.9 billion purchase of Scientific-Atlanta, one of the largest makers of cable set-top boxes.

More here.


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