Ok, when I asked the question is CSCO breaking out (Is Cisco breaking out, October 9, 2007) Mr. Chambers gave a great description of how their technology is changing their business and how it will change business around the world.  In fact, I started True North Video Production, LLC for the same reasons Mr. Chambers outlined, and that view has not changed.  In fact, that belief is more firmly held now than ever before.  Why, I also run a video production company and I can see how my efforts are opening eyes.

Eight weeks after that post, CSCO gained a few more bucks then rolled over.  At that point in time I took CSCO off my shopping list, (CSCO no longer on shopping list, November 26, 2007).  It had fallen 20% relative to the markets decline of only 10%, they  announced a $10 billion buy back and I have my beliefs; buy below $28.50 and sell if we get to $24. 

Ever been a frog in a pan of water?  Well the decline to $24 as so slow and I had sold most of the ETF's so performance was not that painful, so like the frog, I got boiled.  At $21, do I sell?  HELL NO. 

I cannot imagine another 20% decline, and when they use the $10 billion to buy back shares, they will be buying back many more shares at $21 than $34.  Not next quarter, but that buy back will have a dramatic impact on EPS.  I noted in (CSCO no longer on shopping list, November 26, 2007) that if CSCO fell below $24, something else was wrong.  Well is this the end of the world?

If you don't own CSCO now, buy it.  If you own CSCO now, buy more.