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Halftime: Cisco May Be Grooming Exec for CEO

Thursday, 5 May 2011 | 1:39 PM ET

It's the kind of news Cisco Systems investors had long been waiting for.

The technology company said Thursday it's engaging in reorganization efforts to be completed in the next 120 days, CNBC's Melissa Lee reports.

Shake-up at Cisco
Brian Marshall, Gleacher & Company senior analyst discussing the shake-up at Cisco, and the Fast Money traders weigh in on stocks that pop today.

It seems the company is trying to simplify its operations going forward, Gleacher analyst Brian Marshall said. While the announcement is a step in the right direction, Marshall doesn't think the restructuring will greatly affect its cost-savings or its ability to be more nimble in the marketplace. He said it posts $45 billion of annual revenue, growing at less than 10 percent per year.

"The amount of time that it's going to take to turn the operation around is non-trivial in our view," Marshall said, adding the news will have no significant impact on shares in the near-term.

Although chatter on the Street suggests it might be time for CEO John Chambers to step down, Marshall isn't sure management is the problem. He noted that Chambers has been CEO for 16 years, a greater amount of time than rival Juniper Networks has been in business. Yet Marshall admits that he's hearing more about Gary Moore, the company's chief operating officer. Moore is being given more responsibility, but Marshall suggests that could be because the COO position didn't exist until recently. It could also be that Cisco is grooming Moore for CEO, but Marshall said that remains to be seen.

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CALL OF THE DAY: MCDONALD'S DOWNGRADE

Call of the Day: McDonald's Downgrade
Nicole Miller Regan, Piper Jaffray analyst discusses her recent downgrade of McDonald's.

Ba, da, ba, ba, ba! I'm not lovin' it.

That might as well have been the tune Piper Jaffray analyst Nicole Miller Regan was singing on Thursday. She recently downgraded McDonald's .

Regan spoke with the "Fast Money" desk about her decision to downgrade the restaurant stock. Check out the video to see the full conversation.

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Trader disclosure: On May 5, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Cortes owns (SO); Cortes owns (EXC); Cortes owns (GS); Cortes is short (F); Cortes is short (AXL); Cortes is short Nasdaq futures; Cortes is short EEM vs. SPY; Cortes is short EUR/USD; Cortes is short EUR/CHF; Cortes owns (TGT); Cortes is short 5-Yr Treasury Notes; Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU)

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (CVX) for clients
Edwards owns (GLD) for clients
Edwards owns (MCD) for clients
Edwards owns (MSFT) for clients
Edwards owns (SLV) for clients
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Edwards owns (XOM) for clients
Edwards owns (SLV) for clients
Edwards owns (SPY) for clients
Edwards owns (QQQ) for clients
Edwards owns (AZO) for clients
Edwards owns (TGT) for clients
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Edwards owns (WFMI) for clients

Nicole Miller Regan
Piper Jaffray is a Market Maker in (BAGL), (BBRG), (BJRI), (CAKE), (MSSR), (PFCB), (PNRA), (RRGB), (RUTH), (SBUX), (SONC)

CNBC.com with wires.

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