Indices are weak as PPI came in below expectations, Fed would like to see more inflation as this will confirm that US economy is gaining momentum.
S&P 500 @ 1687.70, low today 1684.83
Internals are negative
Oil UP 3 cents
Gold UP $11.90
Canadian $ UP 14 tick @ 96.72
VIX UP 4.55% @ 12.87
In my portfolio:
Sold TCK @ $27.70
Added 45% F @ $16.88
Added 55% KOG @ $9.38
Portfolio ANR BAC F KOG AUY
Exposure 152%
Most stocks are down
@ 2.41 following are green :
ANR BAC AUY TCK CLF SCCO CSIQ JCP
NFLX AAPL NTES BBRY SU EBAY
YUM GG SLW EGO AEM WPRT
RVBD AMCC MON NVDA
FSLR X STLD WLT
TRLA WYNN.....
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hey Saleem,
I'm pretty sure CSCO started a price war last quarter. Sure they can be the #1 IT company, but with gross margin pretty far below guidance, it comes at what cost?
As you know, I've been worried for a while about margins in the tech space and have stayed away from anything I feel can be close to commoditized or have heavy competition. It will be interesting to see the further reaction in after hours and the coming days.
For CSCO specifically, their recent purchase of FIRE limits their ability to repurchase more shares and/or raise the dividend.
Stocktrader
Hi Stocktrader,
YES....you have navigated skilfully from situations where margins are falling......
CSCO is down 4% so far......but it may drag techs further on Thursday.
Have not followed CSCO since 1999 / 2000...when i traded CSCO with repeat enthusiasm.
Saleem
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