At the end of the 20th century, Cisco (CSCO) concluded a huge capital spending program. From 2003 to 2005, the company went through a period of "rationalization" and has emerged with a big jump in cash flows.

As the economy recovers both in the United States and abroad, CSCO has the business model to show incredible performance as revenues rise. The company is trading at a record low 16.9 times 2009 estimated earnings, and management is actively buying stock back.

By Nick Atkeson and Andrew Houghton, editors of Big Money Options