Two Ways To Play: Cisco a Grower and a Shower
Strengthen your portfolio in good times and bad.
Bloomberg reports Cisco Systems (CSCO) reported a 4.4% increase in net profits and gave forecasts for the next six months that were inline with analyst estimates. The world's largest maker of networking devices said fourth quarter net income came in at $0.33 per share, with revenues climbing nearly 10% to $10.36 billion.
CEO John Chambers said that despite the economic challenges which could last for a few quarters, he believes the company can commit to its long-term growth projection of 12-17%. Read Professor Sean Udall's column Inline Skating For Cisco.
From the Bull Pen: Those that remain bullish on CSCO can continue to play the upside. Near-term sell-stops can be set below yesterday's close ($22.55).
From the Bear Cave: Bears wishing to play the downside in tech can use the ETF (XLK). Entry on continuation of a rally to the $23-24 level can be an option.
Time Warner's Profits Sink
Bloomberg reports Time Warner Inc (TWX) posted a 26% drop in second-quarter profits after a sale of assets and tax benefits boosted earnings the prior year. The world's largest media company said net income fell to $792 million, or 22 cents per share. Revenues rose 5% to $11.6 billion beating consensus estimates. CEO Jeff Bewkes confirmed the company is spinning off Time Warner Cable (TWC) and is separating AOL's Internet-access division from its advertising business. Bewkes also said he is open to selling parts or both units of AOL.
From the Bull Pen: Is Disney (DIS) the better media play? Bulls can play the upside with sell-stops set below $30.
From the Bear Cave: Interesting to note how TWX stalled right at some major moving averages. Bears can press the downside with the $13.50 level (52 wk low) in mind; buy-stops can be set above $14.90.
For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.
Quick Check Around the World
Asian trading closed with the Nikkei +2.63%, Sensex +0.75%, Taiwan +3.12% and Shanghai +1.06%.
Quickly glancing towards Europe, we see the CAC +0.62%, DAX +0.04%, FTSE +0.07%
As of 8:30 AM EST, S&P futures are down 4 points to 1279, and Nasdaq futures are higher 5 points to 1874.
A Look At Commodities
Commodities are mixed. Crude oil is slightly lower -0.09 to 119.08. Gold is higher +4.30 to 882.90. Silver is higher +0.168 to 16.740, ad copper is off -3.05 to 345.70.
The dollar index is higher +0.013 to 73.894.
On the Radar
MBA Mortgage Applications: 2.8%.
Click here for the full trading radar.
Good luck today!
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