Cisco Systems (CSCO) seems to be doing all the correct measures in it's bid to reorganize and stay profitable. Recently they identified over $1 billion in possible cost savings and have cut their work force by over 13,000. Recent price momentum over the past month has been positive as this hourly trading chart provided by Barchart shows:
Barchart technical indicators:
- 96% Barchart overall technical buy signal
- Trend Spotter technical buy signal
- Trading above its 20, 50 and 100 day moving averages
- 15 new up days and up 18.21% in the last month
- Relative Strength Index 67.34% and rising
- Barchart computes a technical support level at 18.10
- Recently traded at 18.33 with a 50 day moving average of 16.40
Summary: Cisco Systems (CSCO) has been a long term favorite and in my book deserves to stay there. If the cost savings are met and the P/E ratio returns to its former points investors could see a 14% - 16% annual return over the next 5 years
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