Dot-Com Boom 2.0?
When Cisco Systems CEO John Chambers says he’s more excited about his company’s business now than he has been in 10 years, you better take note.
This no-nonsense comment, made in an interview with the Financial Times[sub required] last week, is from one of the most trusted men in the industry, and he basically said that Cisco is in a better position now than it was before the dot-com boom of the late ‘90s.
We’re about to enter “the second phase of the internet,” Chambers said, and he expects it to last “a minimum of 10 years, probably 15 years.”
That’s a bold statement, but Cramer’s a believer. Just look at the strength of Cisco competitors in the networking space, Juniper and Ciena , lately. Cisco’s a far better company, so if those two are doing well, Cramer expects even more from Chambers and his outfit.
Cisco is near its 52-week high, but the stock has barely run, Cramer said. He sees plenty of upside left in the stock. The company also enjoys tremendous growth internationally, and the Ethernet business is expected to double by 2020. And while Cisco did lose market share in IP routing, Cramer thinks the company could win some of that back.
The most exciting thing going for Cisco is its move into Unified Communications, Cramer said. This allows all types of communications to be received through the device closest to the recipient at any time. So a phone call made to one phone or an email sent to a desktop can be automatically transfered to a PDA or cell phone.
CSCO already made a big push into the space with its purchase of Webex, and Cisco’s bread-and-butter IP networks are all you need for U.C. The company could be printing money if this initiative pans out.
Bottom Line: Cramer thinks Cisco is very right. They know, the Street knows it, and now you know it.
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