Why Buy Cisco Stock?

To the knuckleheads also known as Cisco System's board of directors,

Are you aware that $1B of insider selling needs the equivalant 1,000 investors investing $1,000,000 each to offset the selling pressure?

Click this chart below from the SEC Form 4 Sec Filings for Cisco Insider Trading and Stock Options to see the full details.

Insiders sold enough shares to create 1,000 millionaires!

I owned Cisco stock in the past for a nice ride from $17 to $24. I sold it after the ride as I thought there were other companies who were far more "shareholder friendly."

These days many technology stocks, such as yours, are way off their 2000 highs so I am again taking a look at Cisco Systems for potential purchse.

Before I buy Cisco, I would like to know:

• Why should I invest my hard earned money into a stock where the insiders have sold nearly billion dollars worth of shares with only $424,802 in purchases?

and

• Are all you insiders waiting for the "3-gap-play" to buy at $17.50?
  
• If so, why wasn't there a mad rush of insiders buying at $17.50 the last time the stock was that low?

Maybe I will join you in buying at $17.50 if there is a rash of insider buying greater than insider selling. Otherwise, I may buy shares in companies where insiders have more confidence for the long term.

Compare Cisco to Valence (VLNC), a company I have dollar cost averaged into since selling my Cisco stock. Valence has nothing but insider buying.

Funny thing: I've made money on the Valence! This seems to confirm that insiders know real value and will invest their own money accordingly.

I have a hard time resisting a GREEN company with great growth opportunity when insiders are putting their own money into the stock rather than cashing in low priced options.

For more on Valence, see my articles "OEMtek Uses Valence Batteries for 100 MPG Prius Conversion" and "Valence Technology: A Green Stock with Potential."

Feel free to send me a note when you insiders at Cisco Systems start buying your own shares again using your own money rather than shareholder money.

Disclaimer. I have been accumulating Valence in my newsletter and personal portfolios and have very good profits already at the current price of $2.97. I plan to continue to trade around this core position in an attempt to increase my overall return. I expect Valence to be a very volatile stock.

Conference Board Says No Recession For January

U.S. Jan. leading economic indicators index falls 0.1%

Jas Jain says we are in a recession. The Conference Board disagrees.

By Robert Schroeder
Last update: 10:00 a.m. EST Feb. 21, 2008

WASHINGTON (MarketWatch) -- The index of leading U.S. economic indicators dropped by 0.1% in January, the Conference Board reported Thursday, as weaker stock prices and housing data drove the index's fourth consecutive decline. At the same time, the coincident economic indicator index rose 0.1% in January, the business research organization said. That index measures where the economy is now. The group's labor economist said the rise in the coincident index shows that the economy wasn't in recession in January but that weak growth can be expected in the future.

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WLI Further Confirms That Economy Has Been In Recession & Indicates Depression Ahead

Note this is an email from Jas Jain.

-------- Original Message --------
Subject: ECRI’s WLI Further Confirms That Economy Has Been In Recession & Indicates Depression Ahead
Date: Fri, 1 Feb 2008 10:41:01 -0800
From: Jas Jain

February 01,2008

ECRI’s WLI Further Confirms That Economy Has Been In Recession & Indicates Depression Ahead

JB: “The ECRI Weekly Leading Index (WLI) fell to 131.1 for the week ending January 25 from a downwardly revised 135.7 (previously 135.8). The smoothed, annualized growth rate, however, decreased to -7.1% from an unrevised -6.1%. This ends two straight weeks of improvement for the growth rate.”

The CRASH in WLI level to 131.1 from 135.7 is not just another confirmation that the economy has already been in recession but the first confirmation of my forecast of this recession sliding easily into a depression. How so? It is a growing series and it is back to where it was 50 months ago. This behavior was last seen between 1970-1982, a period of very bad recessions and deep recessions. In 2001, it was seen in September when the economy was already in recession for 6 months (the worst of WLI is always seen after the recession and during the early period of a recovery!). Tells you how leading the indicator really is; as a matter of fact, it has been turned into a lagging indicator by back-adjusting (or back-testing)!

Once and for all, Lakshman Achuthan of ECRI would be proven to be a bubble-meister and a propagandist and not a scientist. Dismal science has a lot to do with human behavior of economists and not due to anything inherent. Most of the economists that have access to the public via MSM are employed by businesses for the purpose of propaganda, e.g., NAR and CAR.

Never look to an economist for the forecast of recessions and depressions!

Jas

ECRI has not called for a recession yet, but Jas Jain has been calling for a depression for a decade.

See

• ECRI WLI Falls to a 6-year Low. The WLI fell due to higher jobless claims, weaker housing activity and lower stock prices, said Lakshman Achuthan, managing director at ECRI. "WLI growth has dropped back to the six-year low seen in early January," Achuthan said. "While the economy and employment did continue to grow through the end of 2007, the window of opportunity to avert a U.S. recession is about to slam shut."
  
• ECRI Says There Is A Window of Opportunity for the US Economy

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