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 73.87-0.1%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: kvkkc1 who wrote (54331)8/7/2001 5:45:03 PM
From: RetiredNow  Read Replies (2) of 77400
 
What I meant by buying in order not to die is simply this. In a tech industry you either buy or build new technology constantly. If you don't, then your competitive advantage is gone within 2 years or less. Cisco and JDSU did what they had to do at the time. I still say that their acquisitions have been excellent. In addition, Cisco spends around 14% of revenues on R&D on top of all their acquisitions. So they are no slouch when it comes to spending on new product development. Either way, I believe the stock is down due to the crappy economy and the fast drop in sales throughout the entire networking industry. The mistake Cisco made was not in its acquisitions, but in ramping up production and inventories too fast. But could you have predicted that sales would have fallen off so fast? I doubt it. Chambers couldn't predict it and he talks to his customers all the time. That means that his customers were telling him that they'd continue to spend all the way until they closed their wallets.

BTW, in their last quarter that they just announced, they brought in $1.7B in positive cash flows. Who cares about earnings fiction? I don't. What I care about is cash flows and Cisco is kicking but in this area.
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