Cisco Systems, Inc. (NASDAQ:CSCO) – Smart Cities Bring Big Money

Cisco Systems, Inc. (NASDAQ:CSCO) – Smart Cities Bring Big Money

Cisco Systems, Inc. (NASDAQ:CSCO) – Smart Cities Bring Big Money

Smart city tech will grow exponentially in the next few years, driven by advances in information and communications technology, including IoT sensors and analytics platforms.

The smart city market is one of the fastest growing segments of government and is set to hit $775 billion in 2021.

In just a few years, the number of smart cities has grown from approximately two dozen to more than 100, and it’s just the tip of the iceberg, with more than 600 cities set to “go smart” in the next few years.

Shayne Heffernan Trade Idea

“This is a large and growing market. There are currently around 100 smart city projects, and we think in a short period of time that will expand to roughly 10-13% of medium to large cities. We see about 5,000 cities of that size and 600 will go to smart city technology in the fairly near term.” “Cisco is a buy under $40”

Why This Matters

Technologies such as smart metering, wireless sensor networks, open platforms, high-speed broadband and cloud computing are key building blocks of the smart city infrastructure. Research shows that two companies are top vendors in the “smart city” tech market with IBM and Cisco in podium positions. Which other companies supply the technology enabling smart cities to rise?

The ten companies below are the ones that already have a firm establishment in this evolving market, and will continue to increase their activities to get a large piece of the pie.

Smart cities are built by these top ten companies:

  1. Cisco
  2. Schneider Electric
  3. Siemens
  4. Microsoft
  5. Hitachi
  6. Huawei
  7. Ericsson
  8. Toshiba
  9. Oracle

Smart city business leaders, contenders and challengers

According to Heffx, this group can be divided in leaders, contenders and challengers.

More than 26 cities globally will be smart cities in 2025 with more than 50 percent being in Europe and North America.

Smart City building blocks

Smart city technology makes life easier for the government and inhabitants in the following area’s:

  • Energy
  • Technology and innovation
  • Sustainability
  • Urban Planning and Building
  • Mobility
  • Security

All these building blocks together form a billion dollar market, very attractive for suppliers. The research shows however that, currently, smart energy and smart technology are the most important parameters of smart cities. Citizens’ mobility and traffic conditions are usually the biggest problems in today’s modern urban cities. And there is a growing demandsin environmentally friendly solutions, which will further benefit electric vehicles in the long term.

Every smart city has a unique number of features and characteristics as well as unique business opportunities. Companies in the smart city space will not only partner and converge among themselves to offer ‘smart’ capabilities but will also start converging with different participants in the ecosystem.  This will open multiple growth opportunities across all industries.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 46.97.

The projected lower bound is: 36.27.

The projected closing price is: 41.62.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 40.0239. This is not an overbought or oversold reading. The last signal was a sell 15 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.16. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 27 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 38. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 23 period(s) ago.

Rex Takasugi – TD Profile

CISCO SYSTEMS closed up 1.210 at 41.760. Volume was 36% below average (neutral) and Bollinger Bands were 19% narrower than normal.

Open       High       Low      Close         Volume
41.270     42.090     41.110   41.760        18,337,406
Technical Outlook
Short Term:          Neutral
Intermediate Term:   Bullish
Long Term:           Bearish
Moving Averages: 10-period       50-period         200-period
Close:           41.73           40.84             46.79
Volatility:      50              89                52
Volume:          24,155,352      36,807,840        23,538,022

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

CISCO SYSTEMS is currently 10.7% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods.

There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of CSCO.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CSCO.O and have had this outlook for the last 13 periods.

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