The ink is barely dry on Microsoft's $8.5 billion Skype acquisition and the chants of "more, more, more" from the armchair aristocracy have begun. In fact, two weeks before the Skype deal, Breakout guest Roger Kay told us he felt the fix for the software giant was for them to do ''years worth of big, money-losing bets."
On Cisco, whose stock is skidding today after yesterday's warning that it would perform worse than expected in the current quarter, trader and MrTopstep.com market commentator Stephen Eubanks says the company needs to make a big acquisition. After two unsuccessful buys with Scientific Atlanta and the Flip Cam (which it recently killed), what should Cisco be looking to snatch up?
According to Eubanks, Cisco OR Microsoft should buy RIM (RIMM), whose market cap is $23 billion (and whose stock is the most-hated on Wall Street). The maker of Blackberry and Playbook devices' stock was trading at $70 three months ago and is now trading in the low $40s.
"If I was a banker, I'd be pushing for these shotgun weddings right now," he says. "$8 billion for a free phone call. I don't like the Skype deal."
For many, the notion of combining two problem stocks is more likely to make one big problem company than to create a big fix. For that very reason, MrTopstep CEO Danny Riley says he "still likes Apple. They're still ahead of the game." However, if Cisco were to fire CEO John Chambers or declare a huge, onetime dividend, he might start to get interested.
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