Read the article "Stock market on track to hit 18,000 by early 2014" - do Google search.
Cost reduction plan is a good move. The current market will flush out the weaker companies. Given demand for fertilizer will keep increasing in tye long-term, it makrs sense to keep buying as it gies diwn in the short-term. Waiting is made easier by dividend yield.
Number one priority for Moynihan is to bring down cost-structure and second priority is to increase dividend. If he does that, stock will be 25.
Looks like manipulation - DIS has a collection of first-rate properties and their animated movies and games are blockbusters - their deal with Netflix bodes well. Their piece parts are worth more than DIS. The stock can't go over 70 - very surprising because overall market is going up. By early 2014, this stock would easily go over 80.
Moynihan needs to cut headcount more aggressively - reports are that bank is overstaffed. Need a 30,000 staff cut to raise return on equity. Per employee numbers such as revenues and profits are the lowest in the industry. Cut, cut, cut!
Stock is stuck even when overall market is going up - this is the perfect time for AAPL to do aggressive buyback.
BAC could easily go over 16 soon but to go over 20 next year, need more cost cuts. Per employee stats of BAC lag behind other major banks.
A 8-10% revenue decline is very high - some strength now is temporary, it will go down more. PE is a function of growth and if they have very low to some negative growth, can't justify a PE of more than 8. The lower guidance means big uncertainty which would not clear up until next six months so there is no catalyst for this to go up. It will decline to $18 and then drift around to pass time until it's become clear if revenue decline is temporary or it's more structural. Chambers has been CEO for too long - CSCO desperately requires new more dynamic management team. If Chambers steps aside, CSCO could go up.
If Chambers does not resign, it's only because of his self-interest and he is not thinking about what's happening to the company. Company has been in doldrums for way too long and it's amazing that BoD still has faith in Chambers, an aging dinosaur.
I think Chambers has been CEO way too long - everything is stale. What CSCO needs is new blood and new thinking. This is one company that would immensely benefit from a new management team. Chambers has been at the helm too long and his perspective is getting out of date. He should recognize that and he himself should offer to step aside and bring someone from outside. Let's just say Chambers is no Bezos who constantly surprises on innovation - who would have thought Amazon, a retailer, would become a major player in cloud services? That's what Chambers lack totally. CSCO has huge cash which they are depleting in buyback to keep stock float - he should have used that cash to branch out in new areas and fire up growth engine but I don't think Chambers is the man - he is out of date. If Chambers is replaced, CSCO will go up at least 10% on that news.
This decline is a good buying opportunity. DIS has a collection of very valuable properties - piece-parts are worth more than the whole. This is the kind of stock one should buy and hold for the long-term.
If they had not lost money in Lone Ranger movie which was a big flop, DIS would have made even more money. Their theme parks, ESPN, animated videos, are strong. They increased prices of theme parks but attendance went up because of improving economy. 2014 would be even a better year. This stock is worth 75.
Sentiment: Strong Buy
Revenue forecast higher, but margin lower-so why?
Apple ordering more but at lower price?
CRUS spending more on R&D?
Sales cost higher because developing new customers?
Costs are not being managed well?
Some of them could be negative but sone could be good.
So did mkt overreact yesterday?
AAPL generates like 60% of revenues, so AAPL can pretty much do anything. They must have extracted a discounted price that explains reduced margin forecast. Why can't CRUS find other customers? Their products must be excellent quality (or AAPL wouldn't buy from them, given AAPL always emphasize quality), so what is the problem? Is it that this company is not being managed well? They exceeded on rev and EPS and increased guidance for next quarter and stock down 13%? What if they missed? It's a small company, how come some big player didn't buy it out? Lots of questions, need answers.
Same thing happened to AAPL - down AH but opened strong next day but then slide. If crus opens higher, sell it.
It opened higher but then went down. I think CRUS will also open higher but then would go down. If it goes up at the open, I will sell mine, just like I did for AAPL.