Amid the sharp pullback of the market, top analyst Collin Gillis on Wednesday recommended investors buy shares of Cisco Systems, but not for any conventional reason.
Gillis thinks the stock will soon turnaround, as CEO John Chambers seeks to preserve his legacy by returning the former tech bellwether to prominence before he retires.
"He's out there trying to protect his legacy before he goes," Gillis said. "So he's going to push hard to get this turnaround and to cut these costs out in a relatively timely manner and we're seeing that happen right now."
Veracruz founder Steve Cortes said he would only buy the stock if Chambers left. It seems he's not alone. After several botched quarters, Chambers' leadership has come into question, even though he was the very person people had long looked to for a read on the tech space.
Investors will look to see what Chambers says when Cisco reports earnings after Wednesday's closing bell. Gillis thinks its results will be the same as last quarter with revenues flat and some earnings-per-share upside because the company is controlling costs.
- Doug Kass: Stock Market Put in 2011 Low on Monday
- Market Indicator with Perfect Record Just Signaled 'Buy'
Don't expect Cisco to reset its long-term goals, though, Gillis said. He expects guidance for October to likely be a flat revenue quarter.
Gillis is a technology analyst with BGC Partners LP in New York. He regularly appears on "Fast Money."
Got something to to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to email@example.com.
Trader disclosure: On Aug 10, 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 (JNG); Cortes owns (PG); Cortes owns (WMT); Cortes owns (S&P); Cortes is short Silver; Cortes is short Gold; Cortes is short the Euro; Cortes is short the British Pound; Najarian owns (APKT) puts; Najarian is short (GLD) puts
For Brian Kelly
Brian Kelly Capital own (GLD) call spreads
Brian Kelly Capital own (SLV) puts
Brian Kelly Capital own (SPY) straddles
Brian Kelly Capital own (MCO) puts
Brian Kelly Capital is short the Euro
Brian Kelly Capital is short the British Pound
For Zach Karabell
Rivertwice Capital & Karabell own (AAPL)
Rivertwice Capital & Karabell own (GOOG)
Rivertwice Capital & Karabell own (GS)
Rivertwice Capital & Karabell own (COH)
Rivertwice Capital is short (QQQ)
Rivertwice Capital is short (XLF)
Rivertwice Capital is short the Euro
For Fred Cannon
KBW expects to receive or intends to seek compensation for investment banking services from (WFC), (BAC), (MS), (JPM), (GS), (C) in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in (WFC), (BAC), (MS), (JPM), (GS), (C) securities.
For Colin Gillis
CNBC.com with wires.