SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.42-2.4%Jan 20 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jacob S. Rosenberg who started this subject11/7/2000 4:08:18 PM
From: t2  Read Replies (1) of 77400
 
The short covering along with the porfolio adjustments by the bigger mutual funds is going to drive demand for Cisco stock. THe short covering will be on the way soon but the porfolio adjustments are going to be happening soon.

My hunch is that they went underweight compared to the S and P 500 weighting for Cisco. You can't blame them after the Lucent, NT situations along with Paul Sagawa's theory of spending slowdowns. If I had managed a fund, I surely would have been less likely to go overweight Cisco and probably underweight. Now, given the all clear signal for Cisco after months of consolodation, they will be buying to bring their position in line with the S and P 500. Most funds don't want to sway too far from the S and P since they don't want to RISK underperforming by too wide a margin.

IMHO, the reality is that managed funds also will track the S and P 500 as closely as possible---especially when it comes to the biggest market cap stocks like GE, CSCO.

I think the trading in Cisco over the coming days will confirm my theory. The nervous sidelines money will get to work in Cisco more than others due to the reduction in risk of holding this stock right now.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News