So goes technology, so goes the economy -- or at least that is the saying. Cisco (CSCO), 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. Related: 5 Cisco Alternatives With Upside 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.
Twitter and become a fan on Facebook. To see these stocks in action, check out the 5 Stocks to Keep an Eye on During Earnings Season.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV