The appeal of technology stocks to growth investors is that of almost unlimited possibility. Technology is everywhere, and is constantly growing and changing. In fact, the rich valuations of many technology stocks – both past and present – can be justified by their explosive growth potential. Many investors will recollect the period during the 1990′s, where that potential was reflected in the astronomical increases in stock valuations of tech companies.
One of the high-flying high-tech stocks of that era is Cisco Systems (CSCO), the world’s largest manufacturer of networking and communications equipment. The company makes the high-speed devices that allow for everything from streaming movies over the Internet to corporate email communications. As far as technology growth companies go, Cisco may have been the poster child for the red-hot technology sector as a whole. Then the tech bubble burst and anything in the segment was obliterated.
But now, more than ten years later, and with the share price of Cisco Systems at nearly the same place it was then, I firmly believe the time has come to re-evaluate this tech bellwether. After all, Cisco is still an enormously profitable company, and still incredibly important in supplying network infrastructure equipment to public and private, as well as government-sector clients.
Let’s face it, the economy has dealt a nasty blow to a lot of companies in a variety of industries. When things finally do turn around, it’s the companies who make things that help businesses grow, that will prosper. And make no mistake; the world’s economies are turning around. Cisco and other technology companies are set to experience the first significant growth that they have seen in more than a decade. And it’s coming soon. To continue reading, click here.