JP Morgan Provides Color on Cisco Systems

JP Morgan provided color on Cisco Systems CSCO. In a research report published today, the rating agency commented on Cisco's agreement to sell its manufacturing facility in Juarez, Mexico. In the report, JP Morgan states, “After the close Cisco Systems (Neutral, covered by Rod Hall) announced an agreement to sell its manufacturing facility in Juarez, Mexico to Foxconn Technology Group which is part of the Hon Hai (Neutral, covered by Gokul Hariharan) family of companies. Terms were not disclosed. Cisco expects the transaction to close by Oct. 2011. 5,000 Cisco employees in Juarez will become employees of Foxconn and Cisco does not expect headcount reductions post sale. Cisco also announced details regarding its $1B annual expense reduction plan.” On Monday, Cisco lost 0.99% of its value to finish the day at $15.44. Its shares recovered all of yesterday's losses in today's pre-market trading, rising 1.07% to $15.60.