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So goes technology, so goes the economy -- or at least that is the saying.
Cisco(CSCO - Get Report), which has disappointed investors over the last few reporting periods, was in the news recently with a
proclamation from its CEO that he will turn the company around.
What is interesting with the rare look behind the curtain of a major technology company is the timing of the release. Cisco is not due to report earnings for the current period ending April 30 until May. Could it be that the CEO is worried about another poor quarterly performance?
That would be my assessment, but far be it for me to know more than the market. There the news was greeted with a surge of buying of Cisco shares, sending the price higher. I would have expected an opposite reaction.
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The company is expected to make a profit of 37 cents per share for the current period. Given the concern at the highest levels of management and demands for better performance, I would be worried about that estimate. In fact, I think it is a safe bet that the company will miss that number.
While the forthcoming changes may be refreshing and beneficial to shareholders, expect more pain in the short run.
Cisco, one of
David Tepper's top tech stocks in the fourth quarter, shows up on a recent list of
S&P 500 stocks with big insider buying and selling as well as
4 Cheap Dividend Stocks With 25% Upside and
40 Stocks Analysts Are Insanely Bullish About.
-- Written by Jamie Dlugosch in Minneapolis.