1) The stochastic is showing that the blue line and met the red line and is about to cross over. It is more convincing when both the line is way at the bottom below the 20% level.
2) As per the RSI, it shows that the RSI is oversold at below the 30% level.
3) As per the MACD, you can see that the blue line is nicely rounding up to go above the red line. I believe when both the line meet, the share will be already up at least 5%.
1) It is cash machine with stable income coming in. Although the next quarter forecast is below the analyst forecast, I believe over the long term, it will definetely meet or exceed the analyst target.
2) Also, the company announce that they will start to pay dividend of 1%-2% starting next year.
3) The best is recently the company has announced a $10 billion share buy back program.
With this analysis that I have conservatively done, I believe a 10% gain for the immediate term is very highly possible.
I am confident because my previously analysis on Dryships have proven to be accurate and I have of course make some money from it.
I believe this round, I will show hand and win again with a accuracy of 100%.
To be more convinced on my analysis, kindly refer to the below article that I have found and read:
Cisco Adds $10 Billion to Its Stock Buyback Program
By Nov 20, 2010 5:16 AM GMT+0800- Cisco Systems Inc., the largest maker of networking equipment, added as much as $10 billion to its stock repurchase program, aiming to give a boost to investors after the shares fell 17 percent last week.
“Today’s decision to increase Cisco’s stock repurchase program is part of our continued commitment to return cash to shareholders,” Chief Financial Officer Frank Calderoni said yesterday in a statement. “We are confident in our strategy, product portfolio and ability to capture and lead new markets.”
The company’s board had already authorized as much as $72 billion in stock buybacks. And in September, Chief Executive Officer John Chambers announced Cisco would issue the first dividend in the company’s history, providing another reward to investors. Cisco is looking at a dividend yield of 1 percent to 2 percent, he said at the time.
Cisco’s shares plunged 16 percent on Nov. 11, the biggest one-day drop in more than 12 years, after the company’s profit and sales forecast fell short of analysts’ estimates. Revenue in the fiscal second quarter will be about $10.1 billion to $10.3 billion, San Jose, California-based Cisco indicated on a conference call.
Excluding some costs, earnings will be 35 cents a share at most. Analysts projected sales of $11.1 billion and profit of 42 cents on average, according to estimates compiled by Bloomberg.
The company faced a “challenging economic environment” last quarter, Chambers said. He blamed the slump on lower government spending in developed countries and market-share losses to rivals such as Motorola Inc. Competition also has forced Cisco to cut prices on some products and seek acquisitions to maintain growth.
“I never want to let down our shareholders, even if I believe it’s a short-term bump,” Chambers said in an interview at the time. “I like for the stock to go up all the time. Obviously, we’ve got to get confidence back.”
Cisco was unchanged at $19.61 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have dropped 18 percent this year. The company had almost $39 billion in cash and short- term investments at the end of October.