Comments on: Is Cisco bracing for an activist siege? http://blogs.reuters.com/breakingviews/2011/04/05/is-cisco-bracing-for-an-activist-siege/ Sun, 28 Apr 2013 15:49:48 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: GaultFalcon http://blogs.reuters.com/breakingviews/2011/04/05/is-cisco-bracing-for-an-activist-siege/comment-page-1/#comment-6938 GaultFalcon Wed, 06 Apr 2011 13:34:28 +0000 http://blogs.reuters.com/columns/?p=5700#comment-6938 "It should stop funneling those dollars into highly competitive — and lower margin — businesses. Selling or spinning off the consumer division, which represents less than 5 percent of sales, should be considered, too. Likewise, Cisco may want to shut down new operations, such as servers. The overall goal should be to refocus management on its hugely profitable markets in switches and routers." Seriously? You could have just shortened this paragraph by saying, "Cisco should stop innovating and just sell the things they have always sold, never expanding into adjacent markets." Kind of a stupid position for any company to take. Cisco's Wall Street issue is mostly a communication problem with Wall Street analysts. Although, in my opinion, analysts should be smart enough to figure out that not all product garner a 70% gross margin, Chambers needs to clearly articulate that as the company grows revenues by expanding their product portfolio margins will decline as revenues and overall profit rise. “It should stop funneling those dollars into highly competitive — and lower margin — businesses. Selling or spinning off the consumer division, which represents less than 5 percent of sales, should be considered, too. Likewise, Cisco may want to shut down new operations, such as servers. The overall goal should be to refocus management on its hugely profitable markets in switches and routers.”

Seriously? You could have just shortened this paragraph by saying, “Cisco should stop innovating and just sell the things they have always sold, never expanding into adjacent markets.” Kind of a stupid position for any company to take.

Cisco’s Wall Street issue is mostly a communication problem with Wall Street analysts. Although, in my opinion, analysts should be smart enough to figure out that not all product garner a 70% gross margin, Chambers needs to clearly articulate that as the company grows revenues by expanding their product portfolio margins will decline as revenues and overall profit rise.

]]> By: MerrillGrinch http://blogs.reuters.com/breakingviews/2011/04/05/is-cisco-bracing-for-an-activist-siege/comment-page-1/#comment-6922 MerrillGrinch Tue, 05 Apr 2011 17:48:25 +0000 http://blogs.reuters.com/columns/?p=5700#comment-6922 Here's goes Reuters again with another eye-catching headline and nothing to back it up. The two Roberts have apparently contracted the Felix Salmon disease! :-) Here’s goes Reuters again with another eye-catching headline and nothing to back it up. The two Roberts have apparently contracted the Felix Salmon disease! :-)

]]> By: mfive http://blogs.reuters.com/breakingviews/2011/04/05/is-cisco-bracing-for-an-activist-siege/comment-page-1/#comment-6921 mfive Tue, 05 Apr 2011 17:38:23 +0000 http://blogs.reuters.com/columns/?p=5700#comment-6921 "Given this, Cisco shareholders, not to mention its employees, who are highly incentivized with the shares, would probably only rally around an outsider with a track record for getting on the board of companies and inspiring them to do better." HA! Clearly you have no idea what you're talking about... “Given this, Cisco shareholders, not to mention its employees, who are highly incentivized with the shares, would probably only rally around an outsider with a track record for getting on the board of companies and inspiring them to do better.”

HA! Clearly you have no idea what you’re talking about…

]]> By: alani24 http://blogs.reuters.com/breakingviews/2011/04/05/is-cisco-bracing-for-an-activist-siege/comment-page-1/#comment-6917 alani24 Tue, 05 Apr 2011 17:19:06 +0000 http://blogs.reuters.com/columns/?p=5700#comment-6917 and the house of cards is about to collapse and the house of cards is about to collapse

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