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.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 86.11-0.2%12:37 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: 10K a day who wrote (50840)4/1/2001 7:48:02 PM
From: Rob S.  Read Replies (1) of 77400
 
Impristine, I agree with JAG, if not his attitude. CSCO was like the junk bond king of the Internet equipment world. They saw the firestorm being created and stepped up with a tanker truck full of fuel; vendor financing and easy payment terms or leases. It is even reported that CSCO became a vehicle for venture financing: they funded start-up companies in return for commitments to buy gear and also got stock options. Articles in CRN and other industry rags report liquidators buying pallets of unopened boxes of routers and the like that have been collecting dust in storage rooms. The start-ups bought products financed by Cisco because they got added venture financing to fuel their growth (growth in vaporware sales). But they didn't need al that they bought. Now Cisco is being forced to foreclose on the inventory and in some cases buy it back to keep prices from collapsing. Even Forbes has an article showing how the glut has effected prices for Cisco stuff - it is down a lot from a few months ago. This trend will not reverse anytime soon and unless there is some reason that gets customers back into a buying panic, prices and margins are unlikely to return to what they have been in the past.

Live by the sword, die by the sword.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News