Cisco has some upside potential regardless but Chambers usually sand-bags the forecast and the stock doesn't react well. Bogey land for Cisco and Juniper is $15 or below. Cisco hasn't traded at such a low PE (for the year now ending) for the past decade and its hard to see much downside from here. The rule for the past dozen years has been that Cisco is going to $20 (at some point every year) regardless of whether the stock is at $15 or $25. As such, its been a good stock to buy on pull-backs like the one we're seeing right now. Given the PE/Blance Sheet/Market dominance, I've been accumulating down here as usual. August 15th should be interesting!
The problem is when Chambers speaks and does some kind of forecast. For some reason he always 'jinxes' the stock. He's just been bad 'carma' if you will for shareholders now going on over 10 years and the market can't seem to break that trend. Maybe this year will be different, maybe not.
that is exactly what happened last year, and Cisco was up 17% the day after earnings...Unless Chambers decides to double down on playing politics with Cisco - a very high possibility - we should see a 15%+ jump in the share price
I went back and looked. You are right, last year in August it jumped 17% after earnings. Interesting that then a rally started that took the stock to 21.30 before the current correction. Let us hope that this time it makes a new yearly high by breaking 22. Their cost structure is very lean for new fiscal year. Hearing from JNPR and RVBD the networking gear market is stronger than expected and Europe seems to be on the mend.