Synopsis: Cisco (NYSE:CSCO) continues to dominate the router and switch sector -- the equipment that links the Internet (Ethernet, Gigabyte Ethernet, ATM technologies). Other products include IP telephony equipment and network services. However, surging Internet growth in both the eastern and western hemispheres is the value-added story here, the key driver of what analysts surveyed by Reuters project will be 15% revenue growth to $34.1 billion in 2007.

True, operating margins may decline slightly to 65% this year, as competitors attempt to shorten Cisco's substantial lead, but the company's acquisition of Scientific-Atlanta positions Cisco to be a player in the emerging end-to-end video distribution segment -- which will add another solid revenue stream to Cisco's arsenal, as video broadcasting on the web expands.

Investment Analysis: Cisco is a high-risk stock not suitable for conservative-risk or moderate-risk investors. However, if your portfolio can tolerate a high-risk growth stock, considerable buying Cisco in four stages: 25% of your position for four consecutive weeks. Cisco's PE is high at 25, and the stock is near a 52-week high, so the stock is vulnerable to a pull-back in the months ahead, but that fact does not change Cisco's robust outlook.