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Cisco Systems, Inc. Message Board

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  • toonawish toonawish Nov 1, 2012 7:33 AM Flag

    A look at Cisco's 2012

    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

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    • 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.

30.15+0.12(+0.40%)Oct 21 4:00 PMEDT