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| What Does CISCO (CSCO) Mean? in forum [Market-Ticker]
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Sdbn
Posts: 391
Incept: 2009-09-13
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Cisco is a major employer here in RTP and below is the link on the local news. I saw this and wondered why the stock price was falling last night. Thanks for the explanation. A large number of our customers are Cisco employees so I watch it fairly closely. "Cisco 3Q net rises 20% as margins, revenue improve" http://wraltechwire.com/business/tech_wi.... |
Rbarreira
Posts: 2826
Incept: 2009-05-27
Portugal -> Sweden
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Quote:it is a well-run business Have they stopped vendor financing yet?
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In Soviet Russia, the government regulates the banks.
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Genesis
Posts: 130796
Incept: 2007-06-26
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I doubt it ;-)
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Flappingeagle
Posts: 1229
Incept: 2011-04-14
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I love CSCO, they paid off my first house. I, in a stroke of pure genius, sold at 80.75. 
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Here are my predictions for everyone to see:
S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu.
"You can't build a house of cards on a shaking table." - Tony Johns
The January 2015 AMZN put at $130 (cost $4.25) will be a winner.
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Digitlman
Posts: 335
Incept: 2011-03-04
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I, too, am in the RTP area, and every week I go biking around and on the Cisco campus. It is large, and they are a large employer in the area.
I thought the company was *not* well run because they used Cisco financing too often to pull forward demand? I seem to recall Tickers to that effect.
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Genesis
Posts: 130796
Incept: 2007-06-26
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Pulling forward demand is not being "not well run" - it is simply gambling on future demand to cover the financing costs.
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Grf
Posts: 1337
Incept: 2008-12-08
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Digitlman wrote..I thought the company was *not* well run because they used Cisco financing too often to pull forward demand? I thought that was Nortel? I met Chambers once, smart and no bull**** guy.
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"Every time we on TF talk about God and gays, God frees a banker and gives him a bonus." --me
"Your farts are interstate commerce and if they want to stick a muffler up your ass they will do it." --Boughtthefarm
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Genesis
Posts: 130796
Incept: 2007-06-26
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No, CISCO has been doing vendor financing and holding it off balance sheet too.
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Sparticlebrane
Posts: 287
Incept: 2009-08-25
Banned
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Looks like there are lots of us around the RTP area.
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Digitlman
Posts: 335
Incept: 2011-03-04
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I seem to recall a Ticker blasting CSCO for doing the vendor financing.
How do you feel about it now?
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Genesis
Posts: 130796
Incept: 2007-06-26
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The same way I felt about it then.
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Digitlman
Posts: 335
Incept: 2011-03-04
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Thought as much.
More hamburgers today for a payment tomorrow (or maybe the next day, or maybe next week, I don't know).
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Sushihorn
Posts: 7802
Incept: 2007-10-22
Arlington, TX
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A lot of these global companies have been giving UGLY forward guidance and many of the pure domestic firms are disappointing on that front as well. We've had a couple of biggies that sell into very broad sectors tell us that business was bad in China and Brazil. Those firms would be Caterpillar and Emerson.
Domestic consumer dependent names indicating near-future weakness include middle-class retailers Macy's and just yesterday Kohls as well. I combine this with the sales tax data out of California for April and get a huge red flag on domestic consumer demand.
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Jmanng
Posts: 537
Incept: 2009-01-03
Boston, Massachusetts, USA
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Doesn't Cisco sell a lot of equipment for all these Cloud datacenters that are still popping up all across the country? I'm surprised that they are lowering their forecasts.
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Ftboomer1
Posts: 26
Incept: 2010-09-29
jacksonville, FL
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I am an enterprise network guy and we have been running from Cisco gear. Their wireless is good but way over priced. (Controller based WAPs are going to be a niche case soon and not the norm IMHO).
Brocade has them spanked on data center switching. Higher performance, lower cost and easier administration. The Nexus gear is just, well, clugey and wrong. (Again IMHO but I am running Brocades VDX vs. Cisco Nexus and loving it)
Cisco's network manglement products have always sucked but I believe that it was the committee experiement that Chambers did that killed them. They are running away from that now but it will be 5+ years to clean up that mess.
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Ftboomer1
Posts: 26
Incept: 2010-09-29
jacksonville, FL
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@Jmanng There are other competitors that have been killing Cisco. I recently went shopping for new data center space and we saw lots of new competitor gear but no new Nexus installs. They had plenty of older Cisco switches (6509, 37xx and the like) but I did not see any new Nexus running.
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Savingsaretheway
Posts: 121
Incept: 2011-12-16
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This isn't the first time over the past few years that Cisco has given a weak forecast, and Chambers proceeded to play the role of Debbie Downer on the conference call. it seems like every time it's happened, the economy continued to chug along and Cisco's sales remained decent.
I'm not very familiar with Chambers, but from what I've observed, the guy always seems to have a rain cloud hanging over his head. If I was major shareholder of Cisco, I'm not sure I would want a pessimistic guy like Chambers running my company.
Over the past couple years, it seems like Chambers has done more damage to the stock with his rhetoric than the company's performance has
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Themortgagedude
Posts: 8853
Incept: 2007-12-17
saint louis
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As for the Wimpy analogy. I find it far better to be Wimpy than Wimpy's creditor. I expect CSCO to tank eventually. This economy is going to kill a lot of their Wimpy's and then it's gonna be tough on them.
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I'm already visualizing you with duct tape over your mouth.
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Mannfm11
Posts: 3556
Incept: 2009-02-28
DFW, Tx
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I doubt vendor financing is that bad an idea, if it pays the bills. What do you think the markup is in this stuff? Seems most of this stuff costs around 25 cents on the dollar to manufacture, if my memory serves me correctly. These guys know the formula. There is also R&D and a time equation for a product before you have to upgrade it. More units per R&D provides a lower per unit cost. This isn't Y2K. One question is, how much of the off balance sheet stuff is bad debt. This procedure should be outlawed, as it gives no visibility to the investor. I am sure Chambers owns enough of the company he won't be too stupid.
The key point is CSCO is a key ingredient in the mix of tech. Their stuff is slowing down, so is INTC and the other outfits involved. Marginal costs is a huge portion of any business model, requiring so many units to break even and each unit there after deducts significantly from profits and visa versa. A slowdown also increases the losses from financing.
The question I have had about tech is how many times can they turn over new models before the broad business becomes a commodity? Iphones sell when they are new. What happens when the market is saturated? DELL was hot stuff when desk tops were becoming obsolete as fast as they came out. The home market could run on upgraded 5 year or older stuff in a lot of cases today. I am wondering when they are coming out with a phone that instantly becomes a porta potty in an emergency? It appears to me the money in that business is going to be building bandwidth to run these gadgets. This cyclical tail chasing by the phone companies is going to be tough business.
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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
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Blow_off_top
Posts: 14
Incept: 2010-11-10
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I was involved in 2 deals versus Cisco networking in the past 3 months. Once deal they came in at 82% off list and the other at 75% off list. Both deals were indirect, so the margin off list to Cisco was most likely in the mid 80's.
When it comes to COGS, there guys are the walmart of IP networking.
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