For the third time in six months, Cisco Systems, Inc. (CSCO) has gapped down in a significant way coupled with huge trading volumes.
Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide.
Again, some Wall Street analysts downgraded the stock, citing concerns about higher competition and lower margins.
My belief is that the selling is overdone and that CSCO is not going away. Trading this morning at 19.17, closing in on a short-term support at 19.00; this could be an oportunity to get in at a good level.
Obviously, CSCO has shown to be very volatile and out of favor; with a contrarian view I am inclined to call this one a buy candidate.