Cisco vs Apple

Why Cisco is a Better Bet Than Apple

Excerpts:

Over the last year, Cisco's stock has fallen by more than 30%. Apple's, in contrast, has risen more than 50% — breaking the $400 barrier, in fact, in after-hours trading Tuesday following its earnings report.

Maybe the better headline would be "The Beauty and the Beast."

... glamour stocks that are as popular as Apple's is today more often than not underperform out-of-favor stocks that are as unpopular as Cisco's.

This does not mean that Cisco's earnings or sales will necessarily grow at a faster pace over the next couple of years than Apple's. On the contrary, the historical pattern is for glamour stocks' earnings and sales to continue growing faster than those of out-of-favor companies like Cisco.

The reason to nevertheless bet on Cisco is that it's unlikely to grow as slowly as its depressed stock price is discounting, while Apple is unlikely to grow as fast as the market is assuming.

Comment: AAPL / CSCO

One problem I have with Apple is the absolute cost. 10 shares would be almost $ 4000!

The other Cisco

Sysco Beats, Surges Despite Inflation

Excerpt:

Sysco shares surged 13.7% to $32.40 Monday morning amid heavy volume following the earnings beat. Around 14 million shares changes hands just 90 minutes into the session, compared with their average daily volume of just 3.8 million.

Sysco said food cost inflation was 5.1% last quarter as costs rose for items like mean and seafood.

Sysco passed on some of those higher costs to its customers -- restaurants, healthcare facilities and other customers who prepare meals away from home -- and reported a 9% jump in revenue to $9.76 billion in the recent quarter.

Comment: Image of "The Cisco Kid". SYY , CSCO