Well, you've got one thing right. Investors look for cracks -- like that complete screw-up by LU on the last earnings report. There's a perfect example of how expectations of a weak quarter can nail a stock. I wouldn't hold my breath on CSCO's revenue growth (I think both EPS and revenue growth are equally important). They will surpass expectations, IMO. Then, Chambers will speak candidly about the huge and exploding market that the company is either the leader or among the leaders. It only sounds like hype because the outlook is so damn good. CSCO has its weaknesses like every other high flying networker. They just do a better job of overcoming than most. Why? Is it technology? CSCO isn't known for having the best technology. They are known for having superior marketing and extreme customer loyalty earned by years of supplying top-of-the-line customer service and support. But most of all, CSCO has a kick-ass sales force unrivaled in this industry. And you know what? CSCO's technology and engineering aren't all that shabby. Customers don't buy $12 billion worth of shit. These people aren't stupid. They go with a vendor they can partner with, and a vendor that delivers solutions. If CSCO can't build internally, they buy. Kind of like another company we all know. For all of Bell Lab's incredible technological expertise, LU still needs to grossly overpay for companies like Nexabit, Ascend, etc. What's up with that? Good company, but ssssssllllllooooooowwwwwwww.
CSCO's combination is damn effective, and all but guarantees future success and appreciating stock price -- especially in such a dynamic, growing industry. It is very difficult for anyone to argue this point, and not look like a complete jackass (although you're doing a stand-up job) Your investment opinion of CSCO is clouded by your blind competitive "I hate CSCO because Chambers is a slick salesman and Ascend kicks CSCOs ass" outlook. |
