The NASDAQ Tech heavy sector is catching up with the rally on the DJIA and the S&P 500. The NAS closed at 1,780.12 +53.59 or + 3.12% on the day.
Let’s have a look at Cisco Systems, Inc. (CSCO) today from a Technical point of view.
The overall analysis after yesterday’s market action is Bearish overall, in the near term it is Neutral, mid-term Bearish and long term Bearish, this can change on any strong upside action with good volume.
Cisco closed up 1.13 pts at 18.33 volume approaching 80MM/shrs on the day.
There are four Open Gaps down on the chart dating back to June 18, 2008 (25.91) thru October 6, 2008 (20.97), the near term resistance is the 50 day moving average at 19.86.
Cisco did not make today’s 100 largest gainers on the NAS: http://bigcharts.marketwatch.com/reports/bigmovers.asp?start=0&date=20081103&data=2&report=1&report_country_code=us
This is Cisco Systems: Cisco Systems routes packets and routs competitors with equal efficiency. The Company dominates the market for IP-based networking equipment, providing routers and switches used to direct data, voice, and video traffic.
Some of their other products include remote access servers, IP telephony equipment, optical networking components, Internet conferencing systems, set-top boxes, and network service and security systems.
Cisco sells its products primarily to large enterprises and telecommunications service providers, but it also markets products designed for small businesses and consumers through its Linksys division. If you are connected to the internet via a wireless network at home or in your office you likely have Linksys system.
Note: The industry sector in which Cisco competes depends on purchases from businesses, telephone companies, cable companies, data communications providers, + TV and radio broadcasters.
Profitability for individual companies with in the sector is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from $500,000 to $1 million.
The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2007 and 2012.
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