Legendary value firm Tweedy, Brown gave its case for holding Cisco Systems Inc (NASDAQ: CSCO) in its recently released 1Q 2011 shareholder letter:
Cisco Systems provides routing, data and networking products for the internet. The company’s clients include corporations, public institutions and telecommunications companies worldwide. Cisco is financially strong and we think statistically cheap. It has a dominant market position and has been growing within a category that we believe still has a lot of room for future growth. Perceived competitive threats and concerns about possible slower rates of growth have put pressure on Cisco’s stock price, which has allowed us an entry point in the stock that we believe is at roughly a one third discount from a conservative estimate of the company’s intrinsic value.
As of 5/2, the following Covestor models hold CSCO:
- Large Cap Core Equity from ASB Capital
- M2 Global from M2 Capital Holdings
- Core Holding from Vista Investment Management
- Net Payout Yields from Mark Holder
- Algorithmic Targets from Bastiaan Bergman
- Fortune 100 from Philip Dhingra
- Long-Short Generalist from BTC Impex
- Domestic Dividend from Harvest Financial Partners
- Innovative Companies from Raymond Stoudt
- S&P 500 Best of Breed from Conrad Leifur
- Pure Growth from BSG&L
- Discount to Intrinsic Value from Ginu Thomas
- Large Cap from Gator Capital
- Venture Capital – Aggressive from Yinglan Tan
- Large Cap Value from Bristlecone VP
Sources:
“Tweedy, Browne Fund Inc 1st Quarter 2011 Shareholder Letter” http://www.tweedy.com/resources/library_docs/quarterly/FundCommentaryQ12011.pdf
