Thursday, March 8, 2007

Stock Recommendation - CSCO

I was in CSCO (Cisco Systems) last month, and sold a few days after quarterly earnings. They reported quarterly earnings not only a few pennies over estimates, but also upped their year-end forecast. Now, usually a company tends to always be conservative in their earnings forecasts, so that they can get a good rise out of the market whenever they beat their own estimates. However, when a company upps its estimates, you have to consider that internal numbers may even by higher.

With that in mind, consider the negative effects of the Asian Bump of last week, as well as general economic fears such as inflation and the threat of the R-word (recession), which have really hurt this stock. However, I think when more economic data comes out (including yesterday's retail numbers), we will see an uptick of this stock back to $28-$29.

In today's over-connected world, there are two big benefactors: network fiber holders and network value-added services. Cisco is of the latter variety. Their biggest gains are going to be in Asia, but I think in the US, they will stay just as strong.

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Great Idea said...

These two "webcast" are a MUST listen too if you are interested in Cisco.

Cisco Systems at Morgan Stanley Technology Conference (CEO) a "must: lisen.

Cisco Systems at Raymond James Institutional Investors Conference (this to)


The CEO of CISCO IS the "rockstar" of CEO's...period!


Finance Guy said...

Thank you Dan. I have been following CSCO for some time. And I agree, listen especially to the Morgan Stanley Technology Conference webcast.