Will CSCO Lead the Way?
After the close today Cisco Systems (NASDAQ:CSCO) will reports its fourth quarter earnings. Wall St. is expecting Cisco to earn 41 cents a share on 10.87 billion in revenues. Many analysts feel a modest surprise to the upside is probable.
Most traders and fund managers that Cisco typically reports in earnings that are in line or exceed estimates by a penny or two. They also know that what is said Cisco’s conference call is often a major market mover. This is why the street will be closely monitoring well respected CEO John Chambers remarks on Cisco future and the general condition of global demand for technology products and services.
We anticipate that cable financial news pundits will be dissecting Chambers speech tonight and spotlighting the highlights looking for a catalyst for the markets in the short term. Cisco is the largest manufacturer of computer networking equipment in the world. Their earnings and guidance often give the market a clearer picture of near term IT spending.
How will Cisco’s earnings impact penny stocks? As we know the OTCBB is made up of many different biotech, biopharma and mining penny stocks. However, there is a large presence of technology stocks on the exchange as well. If CSCO beats estimates and raises guidance, the probability of a short term tech rally is high. Look for penny stock newsletters to hitch their wagons on hot penny stocks that are related to IT infrastructure spending.
For some time now, there has been an opinion from Wall St. that large cap tech names like Cisco, Microsoft (NASDAQ:MSFT) and Intel (NASDAQ:INTC) are insanely cheap. One way or another, tonight’s conference call will paint a clearer picture. So form your penny stock list with technology names and be ready to act if you feel a tech rally can benefit one of those microcap names.
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