Continue reading Closing Bell: From Flash-Crash to Flash Dance (BSX, CSCO, MS, GS, BIDU, HBAN, NBG)

Closing Bell: From Flash-Crash to Flash Dance (BSX, CSCO, MS, GS, BIDU, HBAN, NBG) originally appeared on BloggingStocks on Wed, 12 May 2010 16:00:00 EST. Please see our terms for use of feeds.

There may be one positive thing that came out of the recent cyberattack on Google (GOOG). That good thing would be a very timely spotlight on the issue of computer network security. When we consider the almost instantaneous carnage that one talented hacker or code writer could inflict upon almost any data system, the prudent investor might do well to investigate the opportunities presented by such a scenario.

Continue reading Attack on Google Highlights Cyber Security Issue

Attack on Google Highlights Cyber Security Issue originally appeared on BloggingStocks on Tue, 23 Feb 2010 14:40:00 EST. Please see our terms for use of feeds.

Networking equipment manufacturer Cisco Systems (NASDAQ: CSCO) announced Wednesday that sales are likely to fall this quarter, making it four declines in a row. The company anticipates that revenue will fall 15 to 17% for the first fiscal quarter, which ends in October. This will put revenue between $8.6 billion and $8.8 billion -- down from $10.4 billion for the same quarter last year.

For now, Cisco is looking back on a tough fiscal fourth quarter. The company watched net income fall 46% year-over-year from $2.01 billion to $1.08 billion for the quarter. Revenue was off 18%, down to $8.54 billion but ahead of analyst expectations of $8.51 billion.

Continue reading Cisco expects sales drop of more than 15%

Cisco expects sales drop of more than 15% originally appeared on BloggingStocks on Thu, 06 Aug 2009 08:00:00 EST. Please see our terms for use of feeds.

Tech investors will be looking forward to seeing how Cisco (NASDAQ: CSCO) made out in the third quarter. The networking entity, whose colleagues include Hewlett-Packard (NYSE: HPQ), Juniper Networks (NASDAQ: JNPR), and Alcatel-Lucent (NYSE: ALU), will be reporting Q3 numbers on Wednesday, May 6, after the market closes. According to analysts, Cisco is not expected to grow the bottom line. The call is for 25 cents per share. If that figure is hit, then it will represent a drop of more than 30% on a year-over-year basis.

Here's the bright side, though. Cisco has beat the analysts at their game in recent times. Quite frankly, I think Cisco should be able to come ahead of estimates this week. I don't necessarily see why the trend will break. It's not like the stock has been telling the market that it will. Shares of Cisco have been doing well.

Continue reading Earnings preview: Will Cisco deliver the goods in Q3?

Earnings preview: Will Cisco deliver the goods in Q3? originally appeared on BloggingStocks on Tue, 05 May 2009 17:00:00 EST. Please see our terms for use of feeds.

Telefonaktiebolaget LM Ericsson (ADR) (NASDAQ: ERIC), a telecom-related business whose colleagues include Alcatel-Lucent (NYSE: ALU) and Cisco Systems, Inc. (NASDAQ: CSCO), reported earnings for the third quarter. And, unless I miss my guess, the market liked what it saw. As I write this, shares are up over 15%, and the trading volume is high. So, what's going on here?

Well, according to this source, revenue and profit for the quarter went beyond the expectations of analysts. The top line soared 13%. Nothing wrong with that. The bottom line, however, went down 28%, even though it exceeded what was expected. And then there was the gross margin improvement. A lot of times that can work wonders for a company's shares. Gross margin went from 35.6% to 37%. Wall Street was impressed.

Now, this is all well and good, but am I a buyer of Ericsson after the report? No. There are a few things to consider here. First, the global economy is a mess. Second, statements made by management in terms of the near future indicate a cautious stance. Third, there's no way I'm buying a stock that just rallied by a double-digit percentage in this market. Especially not a tech stock. There are harder ways to lose money. The 52-week low on the ADR's is about $6 per share, and I can easily see this one revisiting that level as we continue to get news on the economy throughout the quarter. Obviously, many investors out there disagree with me. But this is not the time to play momentum trader, in my opinion. I'm happy to sit on the sidelines in this case, even if I turn out to be wrong.

Disclosure: I don't own any company mentioned; positions can change without notice.

Ericsson is rallying, but I'm not joining in originally appeared on BloggingStocks on Mon, 20 Oct 2008 16:00:00 EST. Please see our terms for use of feeds.

Minyanville's top dog, Todd Harrison, dares to ask in public what Wall Street types quietly consider in private. For more insight and ideas, visit www.Minyanville.com.

Yikes, Lehman downgrades Scripps (NYSE: SNI), Gannett (NYSE: GCI) pooped the bed. What the heck is happening to these paltry little rags?

Some thoughts:

• The internet is the single biggest deflationary force ever invented and the "information deflation" is in full force.
  
• Without a doubt, my bullish bent on the newspaper names was my single worst "call" of the year.
  
• The thesis was that portals will buy the papers to feed content into their pipes.
  
• That remains a viable option for some of the franchise properties, although it will seemingly happen -- if it happens -- from lower levels.
  
• I still own some GCI January calls but have quickly become lottery tickets.

R.P.

Position In GCI

Gannett, read all about it! originally appeared on BloggingStocks on Wed, 16 Jul 2008 16:31:00 EST. Please see our terms for use of feeds.

GE after the bell 6/16/06: down slightly, and NBC cutting ad rates to attract investors originally appeared on BloggingStocks on Fri, 16 Jun 2006 19:59:00 EST. Please see our terms for use of feeds.