ARGUS Reiterates a 'Hold' on Cisco Systems (CSCO), Increases Vigilance for Favorable Re-Entry Point
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ARGUS reiterates a 'Hold' on Cisco Systems (Nasdaq: CSCO).
ARGUS analyst says, "Cisco Systems offered somber guidance for calendar 2009 technology spending trends, as management reported deteriorating demand in fiscal 2Q09. CEO John Chambers reports that, based on sales trends as well as his discussions with customers, declining demand has now become a worldwide phenomena; it had earlier been most intensely focused in the industrialized economies. If demand remains depressed, the company is mulling the unprecedented step of major personnel reductions. Cisco remains a cash powerhouse, and does not appear to be losing meaningful market share. At the same time, the company's sales, margins and earnings all face negative comparisons. Accordingly, we see little to drive the stock higher in the near term. We are reiterating our HOLD rating on CSCO shares, while increasing our vigilance for a favorable re-entry point."
Cisco Systems, Inc. designs, manufactures and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry, and provides services associated with these products and their use.
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cisco
debra on Feb 6, 2009 11:42 AMcisco is a well run company, this "major" layoff you speak of will probably be in the range of 2000-6000 people. cisco has over 67,000 employees, THAT IS NOT A MAJOR LAYOFF.This company is not leaving , it will remain standing when the dust settles, i think that is where i want my money. stop the gloom and doom. the COUNTRY is in the tank right now. so look for companys that are well run.the stock may be down, but it will rebound.