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  #21  
Old 06-15-2005, 11:22 AM
michiganfan9 michiganfan9 is offline
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Default Re: Biggest things you look for in a stock?

[ QUOTE ]
Also, you will see that companies that have been active in acquisitions often have a lot of debt

[/ QUOTE ]
Well Cisco systems has no debt and has acquired
April 27, Sipura Technology (by Linksys) Voice over IP specialist

April 14, Topspin Communications Server Fabric Switches

January 12, Airespace Wireless LAN solutions


2004

December 20, Protego Networks, network security software

December 9, BCN Systems, flexible routing software

November 17, Jahi Networks, Network Management appliances

October 21, Perfigo, Network Access control

September 13, dynamicsoft, SIP software

September 9, NetSolve, IT infrastructure management

August 23, P-Cube, IP service control platforms

July 8, Parc Technologies, traffic engineering solutions

June 29, Actona Technologies, Storage networking solutions

June 17, Procket Networks, router silicon expertise

March 22, Riverhead Networks, Distributed Denial of Service attack software

March 12, Twingo Systems, desktop security with SSL and VPNs


2003

November 12, Latitude Communications, audio and web conferencing

March 20, Linksys Group, Consumer/SOHO access devices

March 19, SignalWorks, Echo Cancelling software

January 24, Okena, Intrusion Detection software


2002

August 20, Andiamao Systems, Storage switching systems

July 25, AYR Networks, Distributed networking software

May 1, Navarro Networks, Ethernet ASIC design house

May 1, Hammerhead Networks, Networking software design house


2001

July 27, Allegro Systems, VPN acceleration

July 11, AuroraNetics, RPR chipset company


2000

December 14, ExiO Communications, In-building CDMA wireless

November 13, Radiata, 802.11a wireless

November 10, Active Voice, Unified communication software

October 20, CAIS Software, Multi-unit building softare

September 28, Vovida Networks, Voice over IP software

September 28, IPCell Technologies, Software for integrated VoIP

August 31, PixStream, Hardware and software for video

August 1, IPmobile, 3G Wireless software

July 27, NuSpeed Internet Systems, iSCSI solutions

July 25, Komodo Technology, VoIP devices

July 7, Netiverse, Content aware switches

June 5, HyNEX, ATM + IP Access devices

May 12, Qeyton Systems, Stockholm, Sweden metro DWDM systems

May 5, Arrowpoint Communications, Content aware switches

April 12, Seagull Semiconductor, Terabit switch semiconductors

April 11, PentaCom, Pre-standard RPR switches

March 29, SightPath, Appliances for content delivery

March 16, infoGear Technology, Info Appliance management software

March 16, JetCell, In-building wireless telephony

March 1, Alantech Technologies, San Jose, California Network management software

February 16, Growth Networks, Switch fabric chipsets

January 19, Altiga Networks, Integrated VPN solutions

January 19, Compatible Systems, Service provider VPN solutions

1999

December 20, Pirelli Optical Systems, DWDM equipment

December 17, Internet Engineering Group, Optical networking software

December 16, Worldwide Data Systems, Consulting and engineering services

November 11, V-Bits, Video processing systems

November 9, Aironet Wireless Communications, Wireless LAN products

October 26, Tasmania Network Systems, Web caching software

September 22, Webline Communications, Contact management software

September 15, Cocom, Cable modems

August 26, Cerent, SONET ADMs

August 26, Monterey Networks, Optical transport products

August 18, MaxComm Technologies, Voice over DSL

August 16, Calista, IP PBX solutions

June 29, StratumOne Communications, OC-192 chipsets

June 17, TransMedia Communications, Media Gateway products

April 28, Amteva Technologies, Unified IP communications sofware

April 13, GeoTel Communications, Nework based call routing software

April 8, Sentient Networks, Voice over ATM systems

April 8 Fibex Systems, Integrated Access Digital Loop Carrier

1998

December 2, Pipelinks, Data oriented SONET ADMs

October 14, Selsius Systems, IP telephony solutions

September 15, Clarity Wireless, Last mile wireless solutions

August 21, American Internet, IP address manangement software

July 28, Summa Four, Programmable switches

May 4, CLASS Data Systems, Policy based Networking Solutions

March 11, Percept Software, IP television products

March 11, NetSpeed, DSL CPE equipment

February 18, WheelGroup, security software

1997

December 22, LightSpeed International, Voice over ATM products

July 28, Integrated Network, (Dagaz business line) New Jersey DSLAMs

June 24, Ardent Communications, San Jose, California Multiservice access products

June 24, Global Internet Software Group, Firewall software

June 9, Skystone Systems, Ottawa, Ontario SONET products

March 26 Telesend, DSL channel units

1996

December, Metaplex, SNA to IP migration

October 14, Netsys Technologies, Network simulation

September 3, Granite Systems, Gigabit Ethernet Networking

August 6, Nashoba Networks, Token Ring switches

July 22, Telebit (MICA products), Cupertino, California, OFDM/DMT modem technology

April 22, StrataCom, San Jose, California ATM based network systems

January 23, TGV Software, Internet software maker

1995

October 27, Network Translation, NAT and firewall solutions

September 27, Grand Junction Networks, Fast Ethernet switches

September 6, Internet Junction, Internet gateway software

August 10, Combinet, ISDN remote access

1994

December 8, LightStream, Enterprise ATM switches

October 24, Kalpana, LAN Switches

July 12, Newport Systems Solutions, Software based routers

1993

September 21, Crescendo Communications, LAN Switches

Just one example
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  #22  
Old 06-15-2005, 11:57 AM
James Boston James Boston is offline
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Default Re: Biggest things you look for in a stock?

Proctor & Gamble has about 3 times as much debt as it does cash, and they're acquiring Gillette which has about the same. Yet, your beloved Warren Buffett continues to bet on both. I'm not saying Cisco is a bad company. There are a few debt free companies I've been looking at. I'm just trying to get you out of the mind frame where you seem to set up a stock screener and decide that those who pass are good investments, and those who don't aren't. No one, two, or three metrics are going to tell you what a good investment is. In fact, I find the qualitative aspects of investing to be just as, if not more, important than the quantitative.
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  #23  
Old 06-15-2005, 12:23 PM
RocketManJames RocketManJames is offline
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Default Re: Biggest things you look for in a stock?

[ QUOTE ]
Also, you will see that companies that have been active in acquisitions often have a lot of debt.

[/ QUOTE ]

Operative term being "often."

[ QUOTE ]
Just one example.

[/ QUOTE ]

Exactly.

Also, Cisco's acquisitions were probably mostly stock deals. At least those during the bubble years 1999-2001. Not sure, as I haven't really followed all their acquisitions that closely, but it would make sense. Using inflated stock currency to buy technology seems like a cheap way to go about it.

Also, how big were the deals in the acquisition list you provided? I haven't looked at any of them specifically, just wondering if you knew. Cisco commands a market cap of $120B+. When it seeks to buy a company for as much as $1B, this is much small potatoes for them.

Contrast with larger acquisitions... here are few to serve as examples:

Eastman Kodak buying Creo for about $1B
IAC Interactive buying AskJeeves for around $1.9B
Oracle buying Peoplesoft for roughly $10B
Washington Mutual buying Providian for $6.5B

-RMJ
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  #24  
Old 06-15-2005, 12:26 PM
James Boston James Boston is offline
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Default Re: Biggest things you look for in a stock?

[ QUOTE ]
Also, Cisco's acquisitions were probably mostly stock deals. At least those during the bubble years 1999-2001.

[/ QUOTE ]

This was my first thought, but I wasn't up for digging into it to see if I was right.
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  #25  
Old 06-15-2005, 12:59 PM
AceHigh AceHigh is offline
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Posts: 1,173
Default Re: Biggest things you look for in a stock?

[ QUOTE ]
The only time i dont' like a stock with debt is when the debt is more than its total cash.

[/ QUOTE ]

Debt is often good. Companies need to borrow to grow. Well managed companies with debt are often good companies. Management should react to oppurtunities as they become available, not wait until they have the cash on hand to exploit them.

On the other hand, companies with lots of cash and no debt usually have little or no growth. A growing company would have oppurtunities put the cash to good use.
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  #26  
Old 06-15-2005, 02:29 PM
adios adios is offline
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Default Re: Biggest things you look for in a stock?

[ QUOTE ]
I agree. The only time i dont' like a stock with debt is when the debt is more than its total cash.

[/ QUOTE ]

This shouldn't exclude buying a company's stock necessarily. What about if a company issues new debt as fast as it's paying it off but the cash and equivalents is far less than it's current debt? The truth is that the proper capital structure for a business is open to debate a lot but it is influenced by the type of business a company is in along with other factors like market share and volitility of earnings. Look at the bond ratings for the company to get a clue as to the riskiness of earnings. Debt gets favorable tax treatment, pure and simple, so it makes sense for companies to use leverage. For a discussion on how leverage can be utilized to increase earnings I refer to Damodaran's Investment Valuation opus. BTW having no debt isn't a panacea to making great investments. I've maintained for a long time that MSFT has a sub optimal capital structure and this is one of the reasons that the stock has gone nowhere for so long FWIW.
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  #27  
Old 06-15-2005, 09:41 PM
michiganfan9 michiganfan9 is offline
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Default Re: Biggest things you look for in a stock?

I'm not saying that stocks that I run through screens are good investments and others aren't. I know that I'm wrong if I would say that. I love P and G and think that the acquisition with Gillette was huge. Two extremely well managed companies joining forces. I don't really run that many stock screens anyway. In my mind it can be decieving. I found a stock that had over 10 billion dollars in sales yet was trading at $8. There was a big reason why it was trading there and that is why I don't think that particular stock was a good investment. I probably am not just thinking before I type, and i'm sry for that. I want to learn everything about the market and that is why i'm asking you guys.
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  #28  
Old 06-15-2005, 09:43 PM
michiganfan9 michiganfan9 is offline
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Default Re: Biggest things you look for in a stock?

That is why you are probably right. Cisco's acquisitions were nothing more than $200-600 million dollar companies, local around the california area. I skipped over the word often which he did point out. My fault
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  #29  
Old 06-15-2005, 09:44 PM
michiganfan9 michiganfan9 is offline
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Default Re: Biggest things you look for in a stock?

good post
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  #30  
Old 06-15-2005, 09:45 PM
michiganfan9 michiganfan9 is offline
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Default Re: Biggest things you look for in a stock?

If I looked and researched a stock and liked him that much and saw that it had more debt than free cash, I would still buy it. Now that I have read all of your posts I see where debt can be a good thing. KEEP POSTING!!! [img]/images/graemlins/smile.gif[/img]
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