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Cisco (CSCO) shareholders hoping John Chambers will go are out of luck, a former exec tells BI....

Cisco (CSCO) shareholders hoping John Chambers will go are out of luck, a former exec tells BI. Chambers gets rid of anyone who challenges him, the exec claims, and Cisco's board consists of hand-picked Chambers selections such as ex-Yahoos Carol Bartz and Jerry Yang. In spite of huge stock buybacks, Cisco shares have been range-bound for over 8 years.
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Comments (3)
  • Choosh
    , contributor
    Comments (394) | Send Message
     
    That's how kings of old stayed in power and there is no reason why it shouldn't work just as well today, it's not like the shareholders could vote on it. The only effective vote a shareholder has is to sell.
    14 May 2012, 04:41 PM Reply Like
  • grichardwilson
    , contributor
    Comments (3) | Send Message
     
    You are correct Choosh and sell I did about 2 years ago. The stock has unfortunately traded lower and lower since.
    14 May 2012, 10:18 PM Reply Like
  • sreimer77
    , contributor
    Comments (241) | Send Message
     
    Let's see, they have bought back 3.5 billion shares. Shares outstanding are down 10% just over last 3 years. They have another 7 billion allocated for share re-purchase and have a market cap below 90 billion. So subtract another half billion shares or 7 billion and outstanding shares will have a market cap of 83 billion. Another 48 billion in cash, quarterly free cash flows of 3 billion. In 3 years Cisco will only be able to do a non-leveraged buy out and take themselves private. That's all. Single digit P /E 's and a dividend well above a 5 year treasury in the mean time.
    15 May 2012, 09:20 AM Reply Like
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