I'd like to share an instructive writeup from Vitaliy N. Katsenelson on Cisco (CSCO)-- which, I believe, has been incorrectly hailed by popular media lately as a "value trap".
One thing that Vitaliy didn't mention was that Cisco recently started paying out a modest dividend, which should help eventually turn the market sentiment around. I completely agree with him that it may take at least a few quarters for Mr. Market to feel good about this stock. In the meantime, I intend to enjoy the fact that I am getting a chance to purchase a solid business at depressed prices.
I have previously written about Cisco and its merits at these prices.
I am also eyeing Cisco 2013 Calls to leverage up my investment without buying on margin.
Disclosure: I am an owner of Cisco at the time of this writing.
