The end of the quarter is usually the time when investors take a close look at their portfolio and see which stocks to drop and which ones to add. One of the stocks I have been looking to add is Cisco Systems (CSCO). The stock is down 13 percent for the quarter, compared to 0.4 for the S&P 500, bottoming at around $15. Does it mean that the stock is a buy?
Probably, yes, for the short-term, as the technicians see an upward trading opportunity. Probably not, for the long-term, as fundamentalists would like to see some of the factors that led into Cisco's fall reverse themselves.
As I wrote in a previous piece, Cisco's fall from grace was caused by four factors: A momentum shift away from internet and networking companies in the aftermath of the high-tech bubble of the late 1990s; the transition of the Cisco from and emerging to a mature company; growing competition from Alcatel-Lucent (ALU), Hewlett-Packard (HPQ), Juniper Networks (JNPR), Huawei Technologies Co.; and inability to keep up with competition.
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