PiperJaffray: It companies can beat the big city in a crisis

Sina Financial News PiperJaffray to Cisco, Bao-Tong and other 14 companies, such as the ratio of P/E, cash position, expected and actual performance deviation, found that these companies now average P/E is comparable to 2008, but the net cash position has been greatly improved　　Enterprise storage and networking companies have relatively good performance in 2008, but are now exposed to Europe/financial services too much. The following is a summary of the PiperJaffray: Despite global markets struggling to resolve the European debt crisis and US fiscal problems, investors are increasingly worried about two recessions in the global economy. Only in time will we know whether we are in the same old road of the August 2008. But we believe that in the companies we study, there are relatively strong companies that can outperform the big cities in a market recession. Specifically, in view of the flexible development of storage and the 4–7 layer Application Exchange technology (Layer 4-7) during the 2008/09 global recession, we believe that the "super" rating of EMC, FFI, NTAP, "neutral" rating rvbd is the current valuation level of the risk/benefit ratio attractive companies. We compare the earnings ratios of 14 companies, cash positions, expected deviations from actual performance: Average performance below the expected 21% 2009 14 companies ' revenues on average below our 2008 forecast of 20.5%, median 21.2%; earnings average below our expected 41.9 %, the median value is 30%. The selected consumer goods industry companies we studied included 3D Printing, optical rs and networking equipment, with revenues falling 35%, 29% and 22% respectively.　　Layer 4-7, which has a high return on storage and investment, has performed much better, with revenues falling only 16% and 12% respectively. The current P/E ratio is similar to the 14 companies we studied in 2008, and the current P/E multiples are close to August 2008: average P/E ratios are 16.8 times times and 15.8 times times respectively, and August 2008 are 16.9 times times and 16.2 times times respectively.　　Only Finisar and Polycom two companies have a lower-than-earnings ratio. Storage companies have the biggest exposure to Europe/government/financial services we believe that there are three major concerns about corporate network investors: Exposure to Europe's central and north-east African Region (EMEA)/Europe, government budgets and financial services.　　While the companies we're studying are exposed to at least one aspect of the company, the exposure of storage companies, EMC, nTAP, and BRCD is greatest, and the average 60-65% revenue comes from this. Cash position the ratio of net cash positions of 14 companies to market capitalisation increased from an average of 14.5% in August 2008 to the current 19.7% per cent. During the economic two dip and market recession, net cash headStrong companies can buy back shares, take advantage of competitive mitigation opportunities, and invest in important research and development projects. The prolonged risk economy has had a negative impact on corporate IT spending. (Yunxiang/compiling) This article for the translator authorized Sina Finance exclusive use, any media cannot reprint without authorization. If you need authorization, you must contact the translator by Sina Finance and receive written approval. If reproduced in this article, the Translator reserves the right to prosecute, until the legal responsibility of the person who reprinted.