Cisco Systems Inc., (CSCO) the world's largest maker of computer networking gear, on Tuesday said it's killing its Flip camcorder business as part of a reversal of years of efforts at diversifying into consumer products.
The about-face comes after several quarters of disappointing results and challenges in its core businesses. Analysts say the company has been trying to do too many different things.
A week ago, CEO John Chambers acknowledged the criticism, sending employees a memo vowing to take "bold steps" to narrow the company's focus.
The San Jose, Calif., company said Tuesday that it expects its consumer business shakeup will result in the loss of 550 jobs, or less than 1 percent of its work force of about 73,000.
It also expects to take restructuring charges of no more than $300 million spread out over the current quarter, which ends April 25, and the following one.
Continue reading Cisco to Exit Flip Video-Cam Business
Essentially, there are two ways to keep investors happy. One is share price appreciation, and the other dividend payments. Investors experienced the first with a powerful stock rally in the past year and half. Now, its time for dividends to play a part, writes Rachel Beck of the Associated Press.
When the meltdown occurred, companies pushed the fear button and hoarded cash, now amounting to $940 billion, Beck writes. Now that the economy is on firmer footing companies can let go of some of this pile of money. In the first quarter, 117 companies issued dividends, compared with only 78 a year ago, according to the AP.
Continue reading After a Long Absence, Dividends Are Back
Cisco Systems (CSCO
) seems out of favor with the market these days. On Friday, the shares closed at $17.04. The 52-week low for the stock is $16.97, while the 52-week high is $27.74. With the company near its low point, should traders be looking at the stock?
According to TheFly
, Pacific Crest believes the valuation on the shares is attractive. And at first glance, one might be inclined to agree with such a sentiment. In fact, considering the relatively tight 52-week range, I could easily imagine the stock rising after making what could theoretically turn out to be a bottom.
Continue reading Cisco: A Buy or Sell?
"Even when the market is up a lot, you can always find some good stocks that have been left behind but could be on the verge of a rebound," says George Putnam.
The editor of The Turnaround Letter explains, "That's where we suggest you focus your efforts right now. These eight stocks all have strong business franchises and have all significantly lagged the market over the last two years.
"In fact, several of them are still trading near or even below where they were in early 2009. Here, we look at Bank of America (BAC), Best Buy (BBY), Campbell Soup (CPB), Cisco Systems (CSCO), Microsoft (MSFT) and Sprint Nextel (S).
Continue reading Turnaround Expert: A Six-Pack of Rebound Buys
Prognosticators the world over are throwing in their 2 cents about "my pal Warren's" next market moves; especially since he announced last week that his trigger finger was itchy. When Warren Buffett, chairman of Berkshire Hathaway (BRK.A
) speaks, investors listen.
On Wednesday March 2, this investor threw in his two cents worth (see:Serious Money: What Should Warren Buffett Do Next?
) discussing possible acquisitions. Since all the "pro's", I use the term loosely, have had a say I thought I would give readers a chance to express some of their ideas too.
Continue reading Serious Money: Buffett's Next Buys -- You Pick'em
- Interpublic Group (IPG) to buy from hold at Deutsche Bank.
- Radware (RDWR) to outperform from perform at Oppenheimer.
- Fluor (FLR) and Waddell & Reed (WDR) to buy from hold, as well as AllianceBernstein (AB) to hold from sell, at Citigroup.
- MetroCorp (MCBI) and American Capital (AGNC) to outperform from market perform at Keefe Bruyette.
- International Flavors (IFF) to overweight from equal weight at Barclays.
- BioCryst (BCRX) and Southern Company (SO) to buy from neutral at BofA/Merrill.
- Bunge (BG) to overweight from neutral at HSBC.
Continue reading Analyst Calls: AB, BG, CMG, CSCO, DF, EXPE, JLL, MU, NLSN, S, SO ...
Stocks were gunning for what would have been a ninth day of a rally. What goes up must come down, though, eventually. Jobless claims were under 400,000 and at the lowest levels since summer of 2008. There were mixed reports that President Mubarek was stepping down, although a speech late in the day confirmed that he will just still not be running for office but will remain in charge for now.
Here were today's unofficial closing bell levels:
Dow Jones 12,229.29 -10.60 (-0.09%)
S&P 500 1,321.87 +0.99 (0.07%)
Nasdaq 2,790.45 +1.38 (0.05%)
Continue reading Closing Bell: Rallies Can't Last Forever (EGPT, CSCO, VZ, ATVI, WFMI)
- Polo Ralph Lauren (RL) to neutral from underperform at BofA/Merrill.
- Sigma-Aldrich (SIAL) to outperform from market perform at Leerink.
- Petrobras (PBR) to overweight from equal weight at Barclays.
- Silvercorp Metals (SVM) to buy from neutral at UBS.
- PROS (PRO) to buy from hold at Jefferies.
- Power Integrations (POWI) and Monolithic Power (MPWR) to buy from neutral at Roth Capital.
- Diodes (DIOD) to outperform from neutral at RW Baird.
- Whole Foods (WFMI) to hold from sell at Hapoalim.
- Sinclair Broadcast (SBGI) to overweight from neutral at JPMorgan.
- Sappi (SPP) to outperform from neutral at Macquarie.
- Alpha Natural (ANR) to buy from hold at BB&T.
- Watts Water (WTS) to buy from hold at Brean Murray.
Continue reading Analyst Calls: ANR, CSCO, HUM, ITT, NYX, PBR, RL, WFMI, WMT, YHOO ...
Bellwether technology company Cisco Systems (CSCO) reported second-quarter profit fell, although it still topped analysts forecasts. Net income sank 18% to $1.5 billion or 27 cents a share, from $1.9 billion or 32 cents a year ago, as reported in the New York Times.
Revenue climbed 6% to $10.4 billion from $9.8 billion in the quarter a year ago.
On an adjusted basis, income was 37 cents a share, beating Thomson Reuters forecast of 35 cents a share on revenue of $10.24 billion.
Continue reading Cisco Systems Earnings: Net Income Falls 18%
U.S. stock futures are lower Wednesday morning as investors await comments from Federal Reserve Chairman Ben Bernanke. Futures for the Dow Jones Industrial Average
dropped 22 points to 12,174.00, while those for the S&P 500 index declined 4.9 points to 1,316.80. Futures for the Nasdaq 100 index fell 7.50 points to 2,355.25.
U.S. stocks closed higher Tuesday, with the Dow gaining 0.59% to close at 12,233.
) is expected to post Q4 EPS of $1.10 on revenue of $13.50 billion. Coca-Cola (KO
) is projected to report Q4 EPS of 72 cents on revenue of $9.75 billion. Northrop Grumman (NOC
) is projected to report its Q4 earnings
at $1.01 per share on revenue of $8.80 billion.
Continue reading U.S. Stock Futures Signal Lower Start on Wall Street
JPMorgan (JPM) overall option implied volatility of 26 is below its 26-week average of 32, according to Track Data, suggesting decreasing price movement.
Cisco (CSCO) overall option implied volatility is at 28, according to Track Data, near its 26-week average into its release of Q2 EPS on February 9, suggesting nondirectional price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Much of the U.S. was buried in ice-cold weather. Jobless claims improved to levels better than expected, earnings
kept coming out, and inflation is slightly higher, as the FOMC wants to see. Ben Bernanke said that things are progressing as expected in quantitative easing and did not exactly signal another round of QE3. Strong retail sales
may have carried the day.
Here were today's unofficial closing bell levels ahead of Friday's non-farm payrolls and unemployment data:
Dow Jones: 12,062.26 +20.29 (0.17%)
S&P 500: 1,307.10 +3.07 (0.24%)
Nasdaq: 2,753.88 +4.32 (0.16%)
Top Analyst Upgrades & Downgrades
Continue reading Closing Bell: An Up-Day That Felt Mixed (BJ, CCME, CSCO, EL, FRG, LTD, MRK)
Economies go in cycles. They push to their breaking points, then move in the opposite direction. We saw it clearly in the '90s when there was no end to up (except there was and we abruptly hit it in 2000). In 2008, it felt like there was no end to down. But we now know there is. Things are picking up, and there are numbers to prove it.
Don't be the last to figure out we're in an economic recovery. Sitting on the sidelines, waiting for one more chance to buy a stock at the bargain price you saw in March of 2009 isn't going to happen. Times have changed. The U.S. economy is on the mend.
Continue reading Comfort Zone Investing: Can You Feel the Pendulum Swinging?
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