Cisco shares talked down by rumors
Cisco's stock falls amid rumors, denied by the company, that CEO John Chambers will resign. It also takes a hit from market fears that a recovery isn't coming.
A Cisco spokeswoman said that it was the company's policy not to comment on rumors, but she said there was no truth to the talk that Chambers was leaving.
Cisco shares closed at $12.10, down $1.09 or 8.3 percent, on unusually heavy volume on the Nasdaq market. Earlier in the session, the stock traded as low as $11.94. The stock's 52-week low is $11.04.
Bear Stearns analyst Wojtek Uzdelewicz said Cisco shares also appeared to be under pressure from recent economic data suggesting that the recovery might stall.
"There is just a lot of noise," Uzdelewicz said.
Cisco, the No. 1 maker of equipment for directing Internet traffic, is scheduled to report its fourth-quarter and fiscal 2002 financial results Aug. 6.
Analysts, on average, expect fourth-quarter profits, excluding items, of 12 cents per share, compared with earnings, excluding items, of 2 cents per share a year earlier, according to tracking service First Call.
Cisco shares on Thursday afternoon traded at $12.26, down 93 cents, or almost 7 percent on Nasdaq.
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