Seeking Alpha

Cisco falls as Chambers talks of emerging markets challenges

  • Though U.S. demand is starting to show signs of improvement, emerging markets remain "extremely challenged," says John Chambers at Cisco's (CSCO -2.4%) annual analyst meeting. Those comments are helping Cisco add to the losses they saw yesterday following a Citi downgrade.
  • Cisco reported a 12% Y/Y drop in emerging market orders for its Oct. quarter, and 18% order drops for both China and India. John Chambers admitted at the time the NSA scandal has affected Cisco's Chinese sales, but insisted it's not a major issue elsewhere.
  • Yesterday, an IBM exec provided a somewhat different macro take than Chambers, asserting the European macro climate is improving but adding North America remains "a little more uncertain."
  • Chambers also issued cautious macro commentary in September.
  • Meeting webcast. Presentations: I, II
Comments (5)
  • ASMRCS
    , contributor
    Comments (21) | Send Message
     
    The biggest negative factor effecting the Cisco stock price is John Chambers. He should retire with a small parachute.
    12 Dec 2013, 10:42 AM Reply Like
  • JJMA
    , contributor
    Comments (2) | Send Message
     
    Agree. Chambers' stewardship of the company has been very disastrous. He should definitely go. In fact he should have gone a long time ago.
    15 Dec 2013, 08:38 AM Reply Like
  • MintyFresh32
    , contributor
    Comments (358) | Send Message
     
    CSCO is a solid company, but the question is valuation and entry point. Good forum discussion of Cisco as a dividend growth stock here: http://bit.ly/HGeRKt
    12 Dec 2013, 10:52 AM Reply Like
  • dctodd27
    , contributor
    Comments (115) | Send Message
     
    CSCO has $10B more cash than total liabilities. It generated its highest level ever ($11.7B) of free cash flow last fiscal year. The stock now pays 3.2% and that div is only going up. The market is pricing the stock hilariously wrong.

     

    Long CSCO.
    12 Dec 2013, 11:56 AM Reply Like
  • ASMRCS
    , contributor
    Comments (21) | Send Message
     
    dctodd-that's the same old song we have heard for years. Most of that surplus money is overseas and not likely coming to the USA in the form of dividends or investments anytime soon.
    Chambers is out of date. He needs to step aside and allow new management to form a proactive stance.
    This stock has been on hold for years and won't move up until he is gone.
    16 Dec 2013, 08:24 AM Reply Like
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