Cisco CEO Says US is Engine of Growth and 2 Other Hot Stocks to Watch
Cisco Systems Inc. (NASDAQ:CSCO): Current price $24.18
Chief Executive John Chambers appeared Wednesday on CBNC’s Closing Bell along with Google Executive Chairman Eric Schmidt. The latter asked if global growth would still mostly come from Asia to which Chambers replied that while the United States will probably continue to be the “engine of growth” for the world economy, he perceives strength in a number of markets in the intermediate and long term for technology.
The Cisco CEO went on to say that, “I think it’s going to be more balanced than that. Europe’s recovering better than most people anticipated, especially in Northern Europe. The engine of growth is clearly the U.S.” Chambers also remarked that emerging markets, in the Latin America and Asia-Pacific regions, are “a little bit mixed,” and that China continues to be challenging, as well.
Flow International Corp. (NASDAQ:FLOW): Current price $3.96
On Thursday, the developer and maker of industrial waterjet machines for cutting and cleaning applications said that it will be acquired by that private equity firm American Industrial Partners, which concentrates upon North American-headquartered industrial businesses. The transaction is valued at over $200 million. Through the terms, AIP will purchase all of the outstanding shares of Flow common stock at $4.05 per share in cash. This price represents an 11.3-times multiple of trailing four quarter reported EBITDA, which stood at $17.8 million as of July 31. Flow shares are up some 6.4 percent in heavy volume Thursday.
Rite Aid Corp. (NYSE:RAD): Current price $4.80
Rite Aid has been named the first national retail partner of text4baby, which is the country’s only free text messaging service for pregnant women and mothers of infants under the age of one. The company is bringing its broad consumer reach and reputation as a trusted community health care provider to back text4baby in linking more women to important health and safety information. To honor the new partnership and its continuing commitment to maternal and child health, Rite Aid is giving 10,000 free flu shots to text4baby mothers during the current flu season.