Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Nov 05, 2020
Cisco Systems Looks Better as a Company than It Does as a Stock

Cisco Systems Looks Better as a Company than It Does as a Stock

I was talking with a fellow investor the other day and he asked me to explain my investment philosophy in an elevator pitch. I said, “I don’t analyze companies, I analyze stocks. If you are going to buy a stock, you have to like the company, but you also have to like the price.”

I went on to tell him how I believe that you have to look at the fundamentals because that tells you about the company. You also have to look at the technical analysis because that tells you a lot about how other investors have felt about the stock in the past. Me personally, I don’t do deep-dive analysis on a company’s financials—I’m not a forensic accountant.

Cisco Systems (CSCO) is a perfect example of a stock where the company looks better than the stock. If we look at the weekly chart, the stock has been trending lower for almost a year and a half now. From its high in July ’19 through the end of October ’20, the stock lost over 35% of its value.

For the short term we might see the stock rally because the stock hit the lower rail of a downwardly sloped trend channel and it was oversold based on the weekly stochastic readings and the 10-week RSI. The stock could rally back up to the upper rail of the channel, but I would be very cautious at that point. The upper rail is currently just below the $46 level.

Cisco is set to report earnings again on November 12. The report will be for fiscal first quarter 2021. Analysts expect the company to report earnings of $0.69 per share and that is down 12.5% from last year.

Tickeron’s Fundamental Analysis screener shows that Cisco scores very well in the Valuation Rating with a score of 6 where 1 is the best score possible. The company also scores well in the SMR Rating with a score of 19. Cisco does get a negative score for its P/E Growth Rating with a reading of 80.

Heading in to the report, the sentiment is somewhat neutral with analysts being skewed slightly to the bearish side and short sellers are somewhat bullish. There are 27 analysts following the company with 13 “buy” ratings and 14 “hold” ratings. This puts the buy percentage at 48.1% and that is below the average buy percentage between 65% and 75%. The short interest ratio is at 2.14 and that is below the average reading in the 3.0 range.

The short term outlook from Tickeron is negative with a 79% chance of the stock moving down another 4% over the next month.

 

Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.