Friday, May 17, 2013


Cisco skyrocketed more than 12% after announcing earnings yesterday, trading more than 200M shares.

Out of curiosity, I went back and reviewed what some analysts/prognosticators/experts had to say about Cisco, just one day before the earnings were released. Below are some of the quotes:

"....Cisco will have to work hard to catch up and surpass the head-starts that better-established companies in the space already have" (in reference to cloud computing)

"...we believe that the intense competition in the company's core businesses of routers and switches remains a matter of concern."

"Our proven model does not conclusively show that Cisco will beat earnings estimates this quarter. "

"Caution and challenges continue to be buzzwords surrounding Cisco Systems (CSCO) as it prepares to report its fiscal third-quarter results after the market close on Wednesday."

"Analysts say the No. 1 maker of computer networking gear faces slowing growth for its core routers and switches, due to a poor macroeconomy and technology shifts." 

"tech spending remains challenging, as evidenced by the recent disappointing results and outlook issued by such companies as Oracle (ORCL), IBM (IBM) and Juniper Networks (JNPR)."

"Our spot checks suggest demand for Cisco's products remain mixed, which adds some risk for the operating results and outlook to be announced May 15,"

" least seven brokers have reduced their revenue forecasts for Cisco(US:CSCO) since the first of the month..."

Performances slows with age at Cisco Systems"

The above quotes are an example of the shell game that is played on Wall Street. Given the quotes from the experts above, it appears that anybody could be a Wall Street analyst as long as the analysis that is provided goes something like this; "...well it could go up if this happens....or it could go down if this happens"  

What is the value in that? Of course, the one who gets hurt by this kind of analysis is the retail investor. Perhaps it would be refreshing to hear some guy say-"...well until they release earnings, I dont really know what is going to happen and all I can do is really guess..."

Be careful who you listen too.

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