SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Gorilla and King Portfolio Candidates

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Uncle Frank who wrote (18436)2/23/2000 3:22:00 PM
From: stockman_scott  Read Replies (3) of 54805
 
uf: I just found this in a recent Street.com update on Cisco...FYI...

<<Cisco's Really Expensive Employees Aren't the Ones It Buys
Value-per-employee figures for one company were conspicuously missing from a piece here Tuesday about how much Cisco Systems (Nasdaq:CSCO - news) is paying to buy engineers. The absent company? Cisco itself.

The San Jose, Calif.-based equipment maker has paid on average $3.5 million per employee in its recent acquisitions. That means that it pays slightly more for each engineer, the true object of its affection when it swallows a company with no products or revenue. Is $3.5 million worth it? Well, it's cheap compared with Cisco's own employees. At Tuesday's market value of $424 billion, Cisco's 26,140 employees are valued at more than $16 million each to Wall Street.

Think about that for a moment. Investors expect, on average, each Cisco employee to generate $16 million of value. Cisco generates about $666,000 of revenue annually for each employee, based on the annualization of its $4.35 billion in revenue for the second fiscal quarter ended Jan. 31. That means it will take a generation for each employee to account for in sales what investors will pay in market value.

These are the times in which we live.>>

Any thoughts about the value of those Cisco employees?

Best Regards,

Scott

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext