It could not be a lie (at the time), because he had not sold it yet.
Was his intent to enhance future earnings ? do not know, I doubt it, and if so , hard to prove.
Even in the best scenario to you, to prove your point... it is hard to really side with that view, simply because no one knows the future... a million things could have happened.
The point is.... there is nothing wrong, (at lest in my eyes), for a ceo to improve the company's position.
Once again, if one had a larger view of an investment, rather than a quarter to quarter... then who cares what the quarter to quarter movements really matter (unless you are an speculator OR... we all have grown to be lulled by the song of profit to no end by the analysts.... quarter in and quarter out.
My point Misheldo... is not to defend CSCO... but really to attempt to define why are we so hung up with these quarterly games...
even saying that the blow out quarter is or is not valid... well that depends on what we are looking for in valuating a company... after all... sales are $$$$ and $$$ that comes form old inventory...is STILL $$$$...
Now.... if the market prices CSCO as a growth company... and such growth company is actually NOT. then why did the market prieced it that way. is that CSCO's fault ? is that Chambers fault ?
I do not think CSCO or Chambers forced anyone to buy CSCO, the market participants did.... Next... did Chambers misrepresented any of these facts. ?
So far.... all I have seen is.... he is astute, and not necessarily fully ethical... (and I do not all the details of the specific disclosures and its details.)
Now perhaps I am wrong about it being criminal, but Chambers is a sleazy scumbag and I wish all the worst in life to him.
Oh com'on you do not mean that
If writing off inventory as worthless with the express intent to sell it later is not criminal THEN IT SHOULD BE
I cannot see how he would go for such "set up" (I mean think about all that it is involved so as to the plan to wprk to perfection ?).... and even if he did so.... it would be impossible to prove,,, particularly since no one was really got hurt... |
