Cisco is starting to look interesting. Ex-cash the company trades at around $10 and analysts estimate they will earn $1.60 this year. I look at the number including stock options expense, which is $1.30. I believe handing out stock options is an expense that should be considered in one's valuation analysis.
Cisco is facing competitive pressures in what used to be a virtual monopoly and earnings are at risk. Even if earnings fall by 30% the stock still looks cheap, giving it a decent margin of safety. I am planning to do more work on this one.