Yesterday Cisco announced strong quarterly results and a positive outlook. Meanwhile, Nortel is announcing job cuts. Both are in the networking and telecommunication business. I'm leaning towards Cisco: Good execution, strong balance sheets and good outlook. Nortel is still working on turning around their operations and has debt on their balance sheets.

I would buy Cisco. Unlike Nortel, Cisco does not need an extreme makeover.

Buy something that works which is Cisco.