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Building a Network to Wealth with Cisco

Until recently the technology sector has held up quite well given the weakening conditions of the economy. For much of 2007 technology spending across the world resulted in many companies including Cisco (CSCO) gaining in value.

Maybe that fact should have been a warning sign for what is now transpiring. Anyone remember the boom in tech followed by the dot-com crash?

In a way, appreciation in technology stocks resembled what took place in the late 1990's. Price to earnings multiples expanded representing a belief that revenue growth would be unabated due to the world economic boom.

Well, it was a nice effort, but ultimately technology stocks have come back to earth. No crash this time around. Nope, instead we have seen a correction that may be painful in the short run, but also may provide an entry point for bargain hunters.

There really is no stopping innovation and technology more than ever greases the wheels of capitalism. With world participation, companies like CSCO can be expected to demonstrate above average growth for many years to come.

With a forward price to earnings multiple of less than 17, CSCO now trades like a value stock. As economic balance returns expect CSCO to follow suit with a recovery of lost value and beyond.

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