Thread,
The following is from Option Investor newsletter:
READ AT YOUR RISK
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CSCO - Cisco Systems $106.69 (+13.88)(-1.38)(+3.75)(P5W +25.74)
Cisco is the leading networker and is expected to help build the
next generation Internet. Their goal is to allow people to access
or transfer information without regard to differences in time,
place or type of computer systems, voice or data. About 85% of
the routers used to decipher and direct data traffic on the
Internet are made by Cisco.
CSCO continues to blaze a trail to new highs - almost $14 for the
week on heavy fund-buying volume. CSCO introduced a new product
that will integrate, voice, TV, Internet, long distance, etc
through cable TV infrastructure. It's not just for phone
companies anymore! Their Internet equipment will work with your
cable modem too! It's not an accident. This is a strong tie-in
with AT&T/TCI (also a strong play). CSCO is truly leading the
development of the Internet by helping cable and phone companies
complete "the last mile", or the distance between the cable in the
street and your home. It doesn't hurt that one analyst moved his
"buy" rating up to a "strong buy", either. Given the huge run
this week, CSCO technical chart is still maxed-out positive.
While this good, it also signals that a small pullback is
very possible. Use stop-limits to protect your profits.
The bigger picture is that CSCO is due for another split now that
the price is well over $100. Their historical split range has
been $80-$100. While they have enough shares outstanding to
complete another 3:2 split, a 2:1 would require the shareholder's
to approve more shares. Zack's currently has the next earnings
announcement scheduled for 2/2; perhaps then we'll get the
announcement. There is even more profit built into this stock
since our last writing. While it has resisted any major pullbacks
thus far, nothing says it won't slip with any major pullback now.
Look for market direction and make your move. At this point, wait
for the next dip, nothing moves in a straight line.
BUY CALL FEB-105 CYQ-BA OI= 3795 at $8.75 SL=6.50
BUY CALL*FEB-110 CYQ-BB OI= 2909 at $6.50 SL=4.75
BUY CALL APR-115 CYQ-DC OI= 2325 at $8.50 SL=6.50
LEAPS:
BUY LEAP JAN-2000-100 LCY-AT at $26.25 SL=19.50
BUY LEAP JAN-2001-100 ZCY-AT at $36.00 SL=27.00
**wait for dip before buying**
Picked on Oct 8th $46.69 PE= 113
Change since picked +$46.12 52 week low =$ 34.31
Analysts Ratings 17-13-0-0-0 52 week high=$108.00
Last earnings on 11-04 est=.33 actual=.34
Next earnings on 02-02 est=.36 versus=.29
Chart = quote.yahoo.com
Ibexx |
