Posts by Aaron Pressman

  • After H-P plans split, attention turns to Cisco

    Aaron Pressman at Yahoo Finance13 days ago

    Hewlett-Packard (HPQ) CEO Meg Whitman and her board agreed this week to split up the venerable PC maker just a few years after categorically rejecting the idea. Now the crowd of analysts and investors who see value in breaking up aging tech giants is moving on to new targets. Next up may be networking pioneer Cisco Systems (CSCO).

    Cisco is not in nearly as dire straits as H-P – its revenue and profit growth have only lately tailed off amid weak corporate spending on information technology and growing competition from cloud-focused upstarts. Palo Alto, Calif.-based H-P, meanwhile, increased sales last quarter for the first time in three years.

    But Cisco’s stock price hasn’t kept pace with its long-term, improving fundamentals. Over the past decade, sales have doubled and net income is up 67%. But the stock has gained only 26%, marking only a fraction of the market’s overall rise over that period.

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