Editor’s Note: While Sam Collins is on vacation, we’ve asked Nick Atkeson and Andrew Houghton, editors of Big Money Options, to provide you with a trade of interest until Sam returns June 1.

Cisco Systems (CSCO) — At the end of the 20th century, Cisco 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.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.