CSCO has risen modestly since being added to our portfolio in late December. After closing below $30 on January 19, CSCO gained nearly 4% through the end of the month. Even still, that was sufficient for it to break above its upper Bollinger Band last week while its 50DMA trend line bottomed out the last day of January and has begun arcing upward.

Some of that optimism may be due to Cisco’s announcement on January 24 that it will acquire AppDynamics to expand its IoT product line. Since this transaction is expected to close later this year, it will be interesting to see to what extent Cisco includes forward guidance with respect to revenue and profits from this acquisition when it releases its quarterly report on February 15.

I put a six-month target holding period on this trade to give it plenty of time to work out, but if next week’s numbers surprise to the upside then we may achieve our target return much sooner than that. As of yesterday CSCO was trading just below our buy limit of $31.50, so it’s not too late to bet on next week’s price behavior if you haven’t already.