Seeking Alpha

David Zanoni's  Instablog

David Zanoni
Send Message
David Zanoni is the owner of His success rate is 72% according to David is a graduate of Rutgers University with a B.S. in Management. He is an independent long term investor of quality stocks and uses options for strategy. David believes in the power of... More
My blog:
View David Zanoni's Instablogs on:
  • Hey Oil Speculators - Drive Oil to $30 a Barrel !

         I am on a crusade to rally the same oil speculators or traders that drove the price of oil to $147 last summer and to $72 this summer to do their part to take the price down to $30 a barrel.  By bringing the price down to $30, you will be helping the economy by allowing businesses to increase their profits and allow consumers to keep more of their hard earned money. 

         Come on speculators, begin shorting the oil futures hand over fist driving that oil price down.   Cover your shorts along the way - you'll make money, businesses will have lower costs and higher profits and consumers will funnel more money into the economy.  Let's work together to create an oil stimulus program.

    Tags: USO, OIL, DIG, DUG
    Jul 10 10:09 PM | Link | 5 Comments
  • The Cisco Kid Still Is a Friend of Mine

         With Tech as one of the sectors leading the recently rally in the markets along with the financials and commodities, Cisco (NASDAQ:CSCO) has benefitted by moving up 43% from the March lows.  The stock is up 22% for the year with a PEG ratio of 1.58 and P/E of 15.90.  I would like to explain the reasons why that the uptrend will continue. 

         Their recent inclusion to the Dow Jones Index shows that they are a bellweather company and a major player in the market. This brutal recession is separating the men from the boys in the marketplace, with Cisco emerging as one of the men.   I consider Cisco one of the major forces in the Tech sector along with Apple, Google, Amazon, IBM, and Microsoft. 

         Cisco's core business of internet based networking products is being expanded to include: servers and smart grid information technology.  The server push can be considered risky at this point.  However, if implemented properly, I feel that Cisco can make the servers portion of their business a successful & profitable one.  Their move into smart grid technology is a more exciting story.   With Cisco's EnergyWise software, they will link the phones, computers, lighting, smart meters, and HVAC systems of commercial buildings together to run at peak efficiency saving businesses money and reducing overall energy consumption. Cisco's cash on hand is three times higher than their current debt which puts them in a great position to finance these new projects.

        Recommendation:  I feel that Cisco's stock can have a 5-10% correction at any time along with the entire market.  If you want to start a new position you could wait for that pullback and buy it at $17 - $18.  However, buying it at $19 or $20 will not be a bad investment for the long term ( 5- 10 years) either.

    Disclosure: Long Cisco

    Credits: Thank You to the popular band, WAR, for the title idea.





    Jun 07 10:23 AM | Link | Comment!
  • Walmart - A Great Company, A Stagnant Stock

         The great retail giant, Walmart, went from under $5 a share in the 1980's up to $69 a share in late 1999.  This was a reflection of their aggressive expansion during this time as they dotted the map with new Walmart stores and Sam's Clubs across the USA and into international markets.   However, since the beginning of the decade, Walmart's stock has been stuck in a range from about $43 to $60.  It has turned into a steady, stable dividend paying stock. 

         It would have been great to own Walmart during this recent downturn as investors shifted money into safe havens from late 2007 until the beginning of Sept. 2008.  The dividend pays a little over 2%, similar to the average yield on a 1 year CD.  If that doesn't sound worth your investment - I have an alternative for you:  Sell the September 42.50 put options for .97.  This is a bet that Walmart's stock will not fall below $42.50 which it hasn't in the last decade and I don't see any reason why it would now.  This out of the money PUT will most likely continue to lose value until it's Sept. 2009 expiration date.  Close the position when the option reaches about .15.  This will give you an 84% return on your money. 

         If the stock actually falls below $42.50 by expiration then you will be assigned the stock and own it at that price.  Not a bad deal either way. 

    Tags: WMT, retail
    May 23 11:51 AM | Link | Comment!
Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.