Conscience In Most Men
Cisco
Systems
(
CSCO |
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News |
PowerRating), the bellwether
New Economy stock, is one of several stocks that investors and traders are
watching with great anticipation. CSCO’s earnings report tonight does indeed
have the power to move the markets, but that’s nothing new. The networking
giant’s report and conference call are always market-moving events and tonight’s
report will be no exception.
Talk
on the trading floors is that CSCO’s management team will say that overall
business is at a bottom and that their second quarter should produce an uptick
in revenue and earnings per share. If we get anything like that, look for such
news to spawn a similar rally tomorrow. Two smaller competitors, Juniper
Networks
(
JNPR |
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Chart |
News |
PowerRating) and Riverstone
Networks
(
RSTN |
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News |
PowerRating) came in above Street estimates and have
seen their share value surge. We expect CSCO to do the same, but caution
investors that this move may be mostly behind the networking kingpin. Shares are
up better than 50% since the beginning of October, so unless Chambers really
pulls a rabbit out of his hat, it may be hard to get much more out of the
networker.
Another
stock we’re trading actively is Enron
(
ENE |
Quote |
Chart |
News |
PowerRating)
which is the subject of more rumors than Madonna at a Major League Baseball
convention. One report has Royal Dutch Shell Group buying ENE in an $11 billion
takeover. Speculation or not, ENE seems to be getting a ton of scrutiny from
interested parties other than the SEC, which is the only fly in the ointment.