This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dykstra: Discipline Key in Facing Life's Curveballs

The Whip Comes Down

As I predicted last week, Cisco (CSCO) beat the number and had a strong forecast, but the stock went down.

Therefore, as I stated last week, we must now take a serious look at John Chambers, Cisco's CEO and president. David Montgomery, the managing partner of the Philadelphia Phillies, was recently faced with a similar situation. Despite a new stadium, a team that was in playoff contention until the last pitch of the regular season, and tremendous fans in a great sports town, the Phillies managed to draw approximately 600,000 fewer fans than the previous year, with a resultant loss of at least $20 million in revenue. Montgomery made the business decision he needed to make; he recognized that the team was no longer appealing to its fan base, so he rectified the situation by bringing in a new leader.

It is time for the board of directors of Cisco to respond to its shareholders, of which I am one, and recognize that despite being a flat-out, awesome money-making machine, Chambers is not putting people in the seats. For whatever reason, he does not engender excitement on the Street; therefore, the fans are not buying Cisco's stock. Hence, it is time to follow the lead of Montgomery. Albeit tough, Cisco's board or activist shareholders need to make the right business decision: Mr. John Chambers has to go!

Another stock I mentioned last week, International Paper (IP), is up sharply today on news Koch Industries is buying Georgia Pacific (GP). Remember, I spent $7,300 to control 1,000 shares of this high-quality company's stock and based on those 10 options contracts, made $1,100 in a week as my "good 'til canceled" sell order was filled this morning at the open at $8.40.

That's another example of the leverage of options, if they're used intelligently, and "good 'til canceled" (or GTC) orders are another aspect of the discipline I use to maximize trading success.

At the time of publication, Dykstra was long Cisco and Symantec.

Nicknamed "Nails" for his tough style of play during his Major League Baseball career, Lenny Dykstra was an integral member of the powerful Mets of the mid-1980s and the Phillies of the early 1990s, including the world champion 1986 Mets squad.

Today, Dykstra manages his own stock portfolio and serves as president of several of his privately held companies, including car washes; a partnership with Castrol in "Team Dykstra" Quick Lube Centers; a state-of-the-art ConocoPhillips fueling facility; a real estate development company; and a new venture to develop several "I Sold It on eBay" stores throughout high-demographic areas of Southern California.

4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs