Founding Partner of Alphaone Capital Partners, Dan Niles talked on CNBC about his tech stock picks and reasons behind his picks. Alphaone Capital Partners top tech stocks includes big names like Facebook Inc (NASDAQ:FB), Apple Inc. (NASDAQ:AAPL) and Cisco Systems, Inc. (NASDAQ:CSCO). Niles talked on CNBC about Cisco Systems, Inc. (NASDAQ:CSCO) stock and future of this stock.
Some suggest that Cisco Systems, Inc. (NASDAQ:CSCO) should buy another company as a security behind their core business. Niles feels that Cisco Systems, Inc. (NASDAQ:CSCO) just need to concentrate on their core business and its development. He pointed out that Cisco Systems, Inc. (NASDAQ:CSCO)’s revenues were depressed in 2014, due to a lot of mergers in ISP space.
“[…] If you look at last year Cisco’s revenues were really depressed, because you had all this megacap mergers going on. You have ComCast with their merger, you have got AT&T with Direc TV and so that’s really slowed down spending in the service provider space at the end of last year and I think what you are going to see is service provider spending picking up quite a bit at the back half of this year,” Niles said.
Niles feels that Cisco Systems, Inc. (NASDAQ:CSCO) has got a good dividend yield close to 3%, low P/E multiples. He pointed out that many people don’t like Cisco Systems, Inc. (NASDAQ:CSCO) stock, but he thinks that the stock got the defensive nature which he likes in a stock in an unpredictable market.
Niles thinks that the strong dollar growth and declining overseas growth is not a big concern for Cisco Systems, Inc. (NASDAQ:CSCO) at the moment. He pointed out that Cisco Systems, Inc. (NASDAQ:CSCO) has gone through a rough phase in first and second quarters of 2014, when at one point China Sales were down by 30% YoY. He said that Cisco Systems, Inc. (NASDAQ:CSCO) recorded a negative 3% growth in 2014 and he feels that this might be the catalyst behind growth in 2015.
Niles said that he is interested about Cisco Systems, Inc. (NASDAQ:CSCO)’s growth in US and not in the company’s international growth. He feels that growth in US might dictate the stock growth in 2015. He thinks that international growth is going to be bad for a while for Cisco Systems, Inc. (NASDAQ:CSCO).
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