Invast Blog

Turning our attention to Cisco

One of the best performing stocks in the US technology space over the past month has been Paolo Alto Networks. The stock is now capitalised at around US$15bn and has gained 139% over the past year and 9% over the past month alone. The company’s core products are advanced firewalls designed to provide network security, visibility and granular control of network activity based on application, user, and content identification.

In 2013 MSM – Mobile Security manager was added to extend the firewall security down to mobile devices. In 2014 TRAPS was added to the product list. Traps serves as a version on endpoint protection, client protection without the standard virus file – rather it takes a different view and attempts to monitor, detect and thwart the entry of the virus into the client by monitoring common entries points.

Competitors in this space include FireEye and Sourcefire (now owned by Cisco Systems). Both Paolo Alto Networks and Cisco are key holdings in the Cyber Security US strategy on Invast’s portfolio select platform. The strategy has performed reasonably well over the past year – up 38% but the rate of growth has slowed over the past month to an increase of just 0.3% (as of the time of writing). Cisco has been the main drag on the strategy after recently reporting its earnings. Cisco will report its earnings tomorrow and we thought we would point this out as an important note to watch.

While our focus is on the overall Cyber Security theme, details in Cisco’s earnings will be critical to the overall industry and trend in this strategy. For the July-ended quarter, the consensus revenue estimate is $12.65 billion, up 2% according to Thomson Reuters. Analysts expect earnings of 56 cents a share, up 2% from a year ago. It will be the first report with new CEO Chuck Robbins, who officially took over July 26. John Chambers, who was the CEO for 20 years, is staying on as executive chairman.

Keep an eye on Cisco’s earnings and the trend in Paolo Alto Networks as catalysts for the broader Cyber Security US theme.

To find our more above Invast’s PortfolioSelect platform – and strategies like Cyber Security US – click here.

Best regards,

Invast Investment Committee

These are our initial impressions only, please make sure you always read all disclaimers on this website and individual reports very carefully. The Invast team of advisors are happy to answer any questions you may have, so give us a call today on 1800 468 278 or email support@invast.com.au. Alternatively, use our live chat facility on invast.com.au.

*Past performance is not indicative of future performance. The calculation of the returns is based on the performance of the actual underlying securities, in accordance with the weighting envisaged by the portfolio. These performances exclude financing and commission costs.

 

Featured Portfolios

The Invast PortfolioSelect platform offers a collection of Strategic Investment Portfolios (SIPs). SIPs are professionally researched and constructed portfolios of CFDs over underlying stocks and ETFs, which reflect popular market themes or strategies. You can buy SIPs across local and international stock exchanges in one click.

Cyber Security US

Cyber Security US

With a rise in number and severity of cyber-attacks, spending on cyber security is expected to be among the top technology segments in terms of growth. This portfolio will be executed as a CFD.

Chinese Infrastructure Giants

Chinese Infrastructure Giants

A selection of large, Hong Kong listed infrastructure exposures with assets in China and other countries within the region. This portfolio will be executed as a CFD.

To find out more about our Strategic Investment Portfolios and the PortfolioSelect platform, please click here.

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