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Cisco Systems, Inc. Message Board

  • fluteman_greg fluteman_greg Nov 1, 2012 7:02 AM Flag

    A look at Cisco's 2012

    NET sales increased 7% to 46.1%
    Product sales increased 5% to 36.3 billion
    NET income increased 24% to 8 billion
    Earnings per share increased 27% to $1.49
    Cash and cash equivalents increased to 48.7 billion
    11.5 billion in cash was generated
    Increased the dividend to .14 per share for a 3% yield.

    Cisco repurchased 262 million shares at an average price of $16.64 for 4.4 billion and their dividend paid out 1.5 billion. John Chambers announced their INTENT to return a MINIMUM of 50% of free cash flow through dividends and share repurchase.

    If all the measures of growth are increasing for Cisco THEN WHY is the PPS again STAGNATE for ANOTHER year under John Chambers leadership. Cisco had ANOTHER record year, Chambers took home millions in compensation, YET shareholders are ONCE AGAIN holding the bag with NO RETURN.

    Last quarter was a great quarter where Chambers raised guidance and the stock price went up 8 - 10% in the following couple months ONLY to lose ALL GAINS and actually be below when they reported last quarter, ALL WHILE Chambers says NOTHING. FYI, insiders UNLOADED their options in the $19's just weeks ago. Cisco continues to hand out options like candy at LOW prices, insiders UNLOAD when we go up, stock goes down WHILE Chambers says nothing, SO INSIDERS CAN LOAD UP ON CHEAP OPTIONS AGAIN. Rince, repeat, do it all over again.

    Shareholders can't win with this CEO, it's time for a change, someone who stands up for the company and at least give shareholders equal footing.

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    • Your revs & earns performance figures show that it's NOT the CEO.
      It's the markets willingness to expand the PE.

      Hold on until traders/institutionals decide to award a higher multiple (5 year avg PE is 16.6 with swings from about 10 to 20 every year & into the 30 & 40 range in its hey day 5 years ago.)

      Todays PE is at 11.5 & with estimates of $1.95 for 2013 you could trade out at $32 (5 year avg PE) & then recycle when it contracts again (which it does every year...)

      Sentiment: Buy

      • 1 Reply to toonawish
      • The sole job of the CEO is NOT to manage share price. His DUEL mandate is to manage the buisness and in conjunction with that manage or increase shareholder value or the OWNERS of the company.

        Cisco hands out options like candy to insiders and it is benefical to have the share price swing so options can be granted at lower prices and then they UNLOAD or create overhang at somewhat higher prices and then the CEO NEVER defends the share price when it goes down because LOWER prices benefit NEW OPTIONS and they benefit the company buying back shares which HELP THEM make their number. Chambers made a comment a couple of quarters ago when giving guidance that for EVERY dollar the shareprice went up would cost them a penny in earnings. That is a blazing telltale sign of the scheme they have been using for YEARS.

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