Why are you setting your sights at $22? There are 5 analysts with targets at $26 and S&P has $27. There is no reason csco shouldn't revert to $22 in the next 2 weeks from this oversold level.
A bullish investor could look at CSCO’s 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental data investors should investigate (if they are bullish) is its dividend history.
OVERSOLD TIME TO BUY
Sentiment: Strong Buy
Dr., Actually IBES earnings are: $1.98, $2.08, $2.24
Smart money is buying too cheap. Better if management buys for shareholders before the activists do. Let Icahn start at $22-23.
There are ways to use the cash, but what I'm saying is different. They already have a $15B buyback. I would increase that buyback. $15B over 12 months and an additional $35B, using 1/2 of their annual cash flow. The CFO wants to reward shareholders. I don't think he wants or needs an Icahn type to push him. CSCO has dropped into the basement. I may have to hold this a year to see mid twenty's but it's like money in the bank and the dividend pays for the wait. Of course the price may revert to the mean, especially since the value is compelling. The instant gratification traders provided a nice opportunity for long term investors to buy right. I remember how the street felt about Apple not to long ago. The value was there too. It wont take long until funds start building a position. They probably already are.