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Top 5 Stocks with Sales Exposure to Cisco

Thursday, 11 Nov 2010 | 6:41 PM ET

Although Cisco's stock suffered its worst drop in 16 years, its competitors in the technology space, including Juniper Networks, have recovered close to flat.

Companies that get a large chunk of their sales from Cisco , however, could face some challenges ahead. According to Gleacher & Co., the following companies have at least 10 percent sales exposure to Cisco:

  • Netlogic
  • Cavium
  • Integrated Device Tech
  • Cypress
  • Linear

Cisco lost 17.3 percent of its market value in frenzied trading on Thursday, a day after a gloomy revenue outlook left investors jittery, and some brokerages downgraded the stock.

At least three brokerages lowered their ratings and eight others cut their price targets shares of Cisco, which said weak spending by its public sector customers and soft orders from its cable segment hurt its results.

The disappointing forecast comes a quarter after Cisco warned of an uncertain economy, but led industry watchers to speculate if the weakness was in Cisco's business alone, given its high exposure to the public sector, which has been hemmed in by debt.

In an interview with CNBC on Thursday morning, Cisco Chief Executive John Chambers said the shortfall is not a "call on the economy in any way," adding that the world's top manufacturer of routers and switches did not see any unusual price competition.

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Trader disclosure: On November 11, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman Owns (AAPL), (BAC) and (BAC) preferred, (GOOG), as well as (JPM). Anthony Scaramucci Owns (KO). Tim Seymour Owns (GE).

ANTHONY SCARAMUCCI
Skybridge Owns (KO)
Skybridge Owns U.S. Dollar, Scaramucci Owns U.S. Dollar
Skybridge Owns (BAC), Scaramucci Owns (BAC)
Skybridge Owns (DIS), Scaramucci Owns (DIS)
Skybridge Owns (JPM), Scaramucci Owns (JPM)

KAREN FINERMAN
Finerman's Firm Owns (IWM) Puts
Finerman's Firm Owns (RIG), (BP), (APC)
Finerman's Firm Is Short (IWM)
Finerman's Firm Is Short (SPY)
Finerman's Firm Is Short (MDY)
Finerman's Firm Is Short (IJR)
Finerman's Firm Is Long Russell Puts
Finerman's Firm Is Long S&P Puts
Finerman's Firm Owns (JPM) Leaps, (JPM)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (FRO)
Accounts Managed By Kanundrum Capital Own (QLGC)
Accounts Managed By Kanundrum Capital Own (C)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (MOT)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (MT)
Accounts Managed By Kanundrum Capital Own (IEF)
Accounts Managed By Kanundrum Capital Own (TIP)
Accounts Managed By Kanundrum Capital Own (ANDE)
Accounts Managed By Kanundrum Capital Own (REE)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (GDXJ)
Accounts Managed By Kanundrum Capital Own (TD)
Accounts Managed By Kanundrum Capital Own (AWI)
Accounts Managed By Kanundrum Capital Own (HD)
Accounts Managed By Kanundrum Capital Are Long Euro
Accounts Managed By Kanundrum Capital Own (XHB)
Accounts Managed By Kanundrum Capital Own (CLF)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (JO)
Accounts Managed By Kanundrum Capital Are Short YEN

CARTER WORTH

DAN NATHAN
Nathan Is Short (CSCO) Dec. 22 Puts

COLIN GILLIS
NO DISCLOSURES ON AAPL, RIMM, GOOG, Samsung

DAVID ROSENBERG
NO DISCLOSURES

GE Is The Parent Company Of CNBC

CNBC.com with wires. Reuters contributed to most of this report.

  Price   Change %Change
CAVM
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CSCO
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CY
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IDTI
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LLTC
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