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Follow on Google News | A Tech sector stock that Vincent Rooney says will have a year of strong gains.We recommend broad portfolio diversification is a core tenet of our investment approach. The safest way to grow your wealth and limit your exposure is to spread the risk, looking outside your comfort zone often tends to be the most profitable.
By: Elaine Moore We see the tech sector in particular presents some attractive opportunities right now, especially in the large-cap arena," says Rory Gallagher. One stock we particularly like in the Tech sector is Cisco Systems . Aside from scale, Cisco currently has several advantages over their smaller rivals, one such advantage is its extremely broad portfolio. They also boast some $39 billion in cash coupled with a very large and established customer base. Their high level of penetration in a variety of markets gives them the opportunity to cross-sell products and push upgrades. Cisco continues to expand its addressable market by leveraging core routing, switching and advanced technology into new markets. They have also positioned themselves to benefit from growth sectors with a reputation for being for fast movers. Evidence of this is their early entry on emerging technologies like IP telephony, storage networking, TelePresence and the Smart Grid. Though the company is suffering a rare stumble due to weak demand from U.S. state governments and for certain products such as television set-top boxes, we think Cisco's future growth trajectory should result from a combination of economic recovery and strong product positioning. The stock is especially tempting after coming down dramatically to change hands at 12 times earnings estimates, a huge self-relative discount to its long-term averages, while the general consensus is for growth to get back on track around mid 2011. CEO John Chambers has also promised the initiation of a dividend payout in the 1% to 2% annual range, starting before the end of 2011. The current stock price represents real value in a proven industry leader and those who are smart enough will be positioning themselves now. # # # Rooney Gallagher offer the highest quality support and have strong relationships throughout the worlds financial network . We have a large clint base of sophisticated investors, HNW's, and have been advising some of the worlds finest institutions for almost 25 years. Rooney Gallagher clients benefit from our research expertise, effectively giving them access to our large network of corporate professionals. This extensive experience and knowledge of present day economics and global markets allowing you vastly improve your net worth. Rooney Gallagher Wealth Management Team Members and Associates provide quality, timely information on companies that are undervalued, well positioned and suited for growth and investment. Composing analytical reports on dynamic companies that are mostly overlooked by the mainstream, allowing Rooney Gallagher clients to get involved at low levels and get the optimum return on their investment. End
Page Updated Last on: Jan 13, 2011
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