Ticker Shock: Five Reasons to Add Cisco to Your Portfolio

Glenn Curtis  Jul 02, 2009 11:25 am

Ticker Shock: Five Reasons to Add Cisco to Your Portfolio
 
Thursday's top stories and stocks with potential to move.
 

WMS Industries (WMS):
 According to Bloomberg: “The third-largest US maker of slot machines said Sumner Redstone and National Amusements Inc. cut their stake in the company to 966,999 shares from 2.4 million shares.”

Some thoughts on the news and the overall situation:

1. I’m not reading too much into the reported Redstone move. Long term, this stock could really roll.

2. For obvious reasons, I think the risk is in the near term.

3. With a little luck, the shares could make a new high at some point. That could draw a good amount of investor attention, particularly the momentum set.

4. Is it me, or is it looking a bit pricey at about 20.4 times this year's estimate (currently $1.52)?

Walgreen (WAG):
 The drugstore chain posted a 3.4% increase in comps in June.

My thoughts:

1. I continue to strongly believe that in the drugstore space, this is the best ballpit to play in long-term.

2. If you read Ticker Shock regularly, you know by now that I believe -- due to an increasing number of elderly people and demand for medication --  that the group could really do well.

3. As I alluded to in an article penned on June 22, I’d be even sweeter on this cookie in the mid $20s.

4. Insiders -- how about showing some love?

Hey -- have a safe and great holiday!
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