Current Price: 18.36Mean Target Price: 23.24 (SOURCE: http://finance.yahoo.com)
Scenario Potential: 26%
Yearly Estimated Growth: 10.60%
Change since last update: (1.7%)
As I said from my last post, the support is at 18.29. It would be a pretty optimum time to purchase the stock, because the ^VIX had a huge decline of nearly 4%, which is good for long positions.
Also: "Cisco’s put- to-call ratio has declined 9.9 percent in the eight days following its profit report, the second-fastest decline following an earnings release since 2005" (SOURCE: http://www.bloomberg.com/news/2011-02-24/cisco-bullish-options-bets-jump-following-stock-plunge-in-wake-of-earnings.html?cmpid=yhoo.) This change in ratio means that investors think the worst is over. At least, that's what I'm telling myself.
This was almost $10 more than it was today a year ago. Revenue and net income is higher than it was a year ago. However, debt has increased and financing could be better. This means they are in a hole. They have to cut loose ends. Summer's dividend also will be an interesting aspect of the stock. It is set to yield 1 to 2%.
Conclusion: Short-term buy: ^VIX is decreasing, inevitable publicity, Q3 earnings aren't until 5/11/2011. Buy now, let the hype increase your profit and pull out.
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