Cisco Systems (NASDAQ:CSCO) is opening office in Waterloo to help not compete


Cisco Systems, Inc. (NASDAQ:CSCO) launched new incubation centre in Waterloo and the 2,000-square-foot office would be staffed by 10 to 12 employees. At yesterday’s unveiling, the company also declared $1 million in funding over five years to build the Cisco Research Chair in Smart Grid. It will be occupied by Keshav, a computer science professor at the University of Waterloo, who will organize studies into enhancing and improving electricity grids.

The Cisco office is the first in the area since the giant in the communications technology industry pulled the plug on its Waterloo office after just four months in 2001. Cisco Systems (CSCO) acquired the videoconferencing company Pixstream in a deal valued at $554 million, then closed it soon after when the dot-com boom burst.

The officials cleared their aim that the move was not an attempt to compete with local tech incubators already in operation at the Accelerator Centre and Communitech Hub. Nitin Kawale, president of Cisco Canada, said that they are investing in the research chair and incubation centre with an aim to help generate more startups that it can later partner with or acquire.

Latest closing price and its Comparison with some technical indicators

The stock closed at $17.50, up 0.36 points or 2.10% from previous close and at a distance of -4.40% from 20-day simple moving average. In the last trading session, the stock’s price moved -4.49% below its 200 day moving average, changing hands as low as $17.00 per share. The stock is currently trading -6.40% down its SMA 50.

Find out whether the stock is performing well?

The percentage change in the price over the past fifty two weeks remained at -2.88%. The price range in the same period had a highest hit of $21.30 on Apr 02, 2012 while lowest level during that period was $14.96 on Jul 25, 2012. The 1-year target price estimate, which is the median price target, as set by analysts covering the stock is $22.00. The stock in last 12 months fell -3.71% and has dropped -1.32% since the beginning of this year.

How this stock generally moves along with the stock market?

This stock is more risky when compared to the shifts in the equity markets as its beta value is standing at 1.26. To measure price-variation, we found this stock’s volatility over a week period was 2.96% and for the month was 2.00%.

What analysts think about this stock?

The analyst mean recommendation for this week has been 2.2, same as was in the last week. The price target of $14.00 was the lowest while the highest price target was set as $25.00, according to 36 analysts surveyed by Thomson Reuters.

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