Cisco Systems: Sidelined Money Ready To Play - by Aaron Hoddinott

The markets were thumped this week by fickle investors. Geithner was too vague when explaining how he plans on fixing the banks which have been clobbered by $756 billion in credit losses. Because of this, panic sellers have once again created a great buying opportunity for optimistic investors like myself.

*I believe that if you’re an investor you have to have a glass half full perspective or you’re in the wrong game.*

We’ve all heard the reports and rumors about how there is a ton of money on the sidelines right now. This money is waiting to come into the market at the right time. No one knows when the “right time” will be exactly, but the big players are stockpiling cash and working on their prediction. To give you an idea just how much money is on the sidelines, let’s take a look at Cisco Systems Inc. (CSCO:NASDAQ), the technology giant whose stock has been hammered and criticized by many.

Over the last six months Cisco’s stock has gone from roughly $25 per share to as low as $14.20; a classic case of a powerhouse company getting hammered with the rest of the market. Like so many stocks, they bottomed in November and have been hovering between $15 and $17 since. Investors are now realizing Cisco has an ace up their sleeve and that their drop in share value may have been overdone.

The Ace: Cisco has roughly $30 billion in cash and equivalents which is the largest cache among high-tech companies and second to, who many consider the most powerful company in the world, Exxon Mobil (Among S&P 500 companies).

Thanks to the economic crisis Cisco has put themselves in a position to acquire