5.16.13: Cisco’s breakout on weekly chart

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Today’s chart and fundamental comment is an update of our March 7th post on Cisco (CSCO). Last night and this morning the key 200-month technical resistance level was taken out decisively, after Cisco resported quarterly results. Revenues rose 5%, operating profit rose 7% and CSCO said that enterprise and large-business tech spending was recovering.

The next stop technically is the $28 area.

Cisco has now gone from being a growth stock of the late 1990’s to a decent-dividend, low valuation, value stock of the 2000’s.

Fundamentally, cash-flow generation is robust.

We’ll have more later, but heed the 12% pop in the stock price on 3(x) average volume already today.

Trinity Asset Management, Inc. by:

Brian Gilmartin, CFA

Portfolio manager

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