Monday, August 23, 2010

Surprise Cisco Sale

CEO of Cisco, John Chambers, surprised investors far and wide when news broke out that the networking giant’s boss had sold an outstanding 243,178 at an average price of $22.50 per share. That amounts to $5,471,505 in cash. The move may have angered long term value investors who were holding onto the stock, as selling usually shows signed of weakness and uncertainty. However, CEOs usually sell their own stock for various reasons including retirement, needing the money, and just as a safe move if they believe the market will take the stock lower.

“Chambers always pull through.” Said star analyst and co-CEO of The Markets Are Open, Andy “Raw” Kibbens. “Cisco is a clear buy. You don’t sell a networking company when the Internet is growing faster than anything. Cisco has been growing over 20% per year.”

Stockbreifings.com had this to say:
“If you’re contemplating investing in Cisco Systems (NASDAQ:CSCO) stocks, make sure you make the trade at the right price. Timing the market or technical analysis might often a difficult task, but do make sure you take into account the price history”
http://www.stockbriefings.com/cisco-systems-nasdaqcsco-chairman-sell-off/3171542

“Now is the time to buy Cisco,” Kibbens retorted. “It’s trading one point above its 52-week low, and they’re worried about timing? Just buy the darn stock.”

Cisco is currently trading at $22.23 and has a 52-week low of $20.93.

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