Saturday, June 18, 2011

Cisco - Did I say $ $16.....I meant $15

Initially bought options at an effective price of $17.

$16 put options assigned this weekend.

Hence CCI is the "proud owner" of a second lot of the stock at an effective price of $15.75

Unfortunately Cisco is now down to $15, and things look bleak.
However, there is still about $8/share in cash on the books means the estimated $1.60 in earnings is even cheaper and the div yield is up to 1.6%.

Time to sit tight for awhile and see what news earning season brings for the stock.

At that time CCI felt $17 was a good entry price.
Clearly, what I meant to say is $16 is a good entry
That is where it is trading now.

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