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Old 05-22-2011, 09:58 PM   #21
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I bailed on CSCO (mind you I only had a 100 shares) about 3 months ago for a small profit (had it for almost 9 years) and bought IRBT. This is a robot company that makes the Roomba and Scooba house cleaners but their big $$ is in military applications. They just landed a big Navy contract and also make stuff for the EOD folks and Intel units. I have stayed in touch with many of my Active duty pards and they say that the military is thinking of new ways to use robots all the time (no flag draped coffins for blown up robots ya know)

In 2 years I've quadrupled my $$ on this company and I think better things are to come. The main thing that worries of course is military budgets may get the ax soon and consumers may retrench from high gas prices etc.
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Old 05-22-2011, 11:23 PM   #22
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Sure we're talking about the same company?

CSCO makes networking gear; routers, switches, hubs. They're not in the robot business.
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Old 05-23-2011, 07:16 AM   #23
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Sure we're talking about the same company?

CSCO makes networking gear; routers, switches, hubs. They're not in the robot business.
Sorry about that.
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Old 05-23-2011, 08:36 AM   #24
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Sure we're talking about the same company?

CSCO makes networking gear; routers, switches, hubs. They're not in the robot business.
I think he's talking about IRBT, which he bought with his CSCO proceeds; from his OP:

Quote:
... bailed on CSCO (mind you I only had a 100 shares) about 3 months ago for a small profit (had it for almost 9 years) and bought IRBT. This is a robot company that makes the Roomba and Scooba house cleaners but their big $$ is in military applications.
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Old 05-23-2011, 06:03 PM   #25
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Cisco will be doing layoffs later this year...
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Old 05-23-2011, 09:30 PM   #26
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Cisco will shed some of the consumer businesses it acquired.
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Old 05-27-2011, 12:11 PM   #27
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Cisco had some internal meetings/announcements last week and some Sr leaders have been ousted. There has been a lot of bloat in this highly matrixed company for many years and their internal processes/procedures/overlaps were never really scutinized and optimized to take cost out. Back in the day they were very profitable despinte themselves so internal costs didn't get enough attention. Huawei and HP have gotton more aggressive the past several years and have been eating Cisco's lunch, and it appears they are finally realizing all the consumer stuff has been a distraction and casued them to take their eyes off the bread and butter iron. I suspect they will get this right, but it may take a while.
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Old 05-28-2011, 11:59 AM   #28
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I suspect they will get this right, but it may take a while.
How long are you waiting? I am getting impatient but I have waited this long...
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Old 05-29-2011, 12:51 PM   #29
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How long are you waiting? I am getting impatient but I have waited this long...
I am not holding any CSCO at the moment, but current price looks attractive. As to waiting, I would think it will 18+ months to become more focused/efficient, although I am sure Chamber will want to move faster than that.
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Old 05-29-2011, 01:14 PM   #30
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I am not holding any CSCO at the moment, but current price looks attractive. As to waiting, I would think it will 18+ months to become more focused/efficient, although I am sure Chamber will want to move faster than that.
How many jobs are moving to India?
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Old 05-29-2011, 01:49 PM   #31
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I suppose many Cisco jobs are already there, but hope that is not their answer to further cost reduction. I for one have an extreme distaste for the outsourcing bandwagon that so many big companies jumped on back in the 90s and still feel that is the root cause for where the economy is today here in the U.S.
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Old 05-29-2011, 03:39 PM   #32
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Ialthough I am sure Chamber will want to move faster than that.
Chambers? You mean the guy that has overseen its decline through numerous ill-fated acquisitions?
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Old 05-29-2011, 04:44 PM   #33
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Chambers? You mean the guy that has overseen its decline through numerous ill-fated acquisitions?
Yep, John Chambers. I still like the guy and think the stock is worth buying at this level. He is a very charismatic leader and has been a great salesman for the company. I know many are frustrated with how the stock has performed and are down on him, but it is still a great company, sits on a huge pile of cash (that they will not fritter away on more new disjointed acquisitions) and I believe he and their talent pool will right the ship. That said, its sounds like you are pretty much feed-up with how things have gone and don't want to continue holding waiting for a turnaround. All I can say is follow your instincts.
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Old 05-29-2011, 05:32 PM   #34
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I suppose many Cisco jobs are already there, but hope that is not their answer to further cost reduction. I for one have an extreme distaste for the outsourcing bandwagon that so many big companies jumped on back in the 90s and still feel that is the root cause for where the economy is today here in the U.S.
I think you'll see more off shore out sourcing at cisco in the future. The nature of their products entails lots of incremental updates to core pieces of hardware and software with a lot of grinding q/a cycles. People tend to go w/ the dog- pile approach on these type of endeavors and off shoring always looks appealing in these circumstances
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Old 05-29-2011, 05:45 PM   #35
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I think you'll see more off shore out sourcing at cisco in the future. The nature of their products entails lots of incremental updates to core pieces of hardware and software with a lot of grinding q/a cycles. People tend to go w/ the dog- pile approach on these type of endeavors and off shoring always looks appealing in these circumstances
Yes and no. For major network products, if its done offshore, I suspect it will be in their own development center with Cisco employees vs outsourced. Many of Cisco's largest customers are service providers that may not be overjoyed at the code they are running being handled by some outsourced entity.
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Old 05-29-2011, 11:58 PM   #36
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i agree. the prev post sort of implied (to me anyways) that they meant
off shoring whilst saying outsourcing. most likely my misinterpretation.
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Old 05-30-2011, 09:42 AM   #37
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i agree. the prev post sort of implied (to me anyways) that they meant
off shoring whilst saying outsourcing. most likely my misinterpretation.
Well, if it takes jobs out of the US, I don't much like either scenario, but I know what you meant.
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Old 05-30-2011, 09:55 AM   #38
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... That said, its sounds like you are pretty much feed-up with how things have gone and don't want to continue holding waiting for a turnaround. All I can say is follow your instincts.
I guess the dividend is holding me around to get paid to wait for a turnaround. I just think it will need someone other than Chambers.
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Old 05-30-2011, 10:29 AM   #39
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I guess the dividend is holding me around to get paid to wait for a turnaround. I just think it will need someone other than Chambers.
Part of the problem is that some executives are good at growing smaller businesses into big ones, but once the business is already big, most of their "magic" is gone. Small companies have an emphasis in growth, and they can more easily do it without bad acquisitions that aren't a good fit (see what Peter Lynch called "diworseification"). Warren Buffett has more or less said as much, indicating how much easier it would be to continue to rack up market-shattering returns if he had (say) $10 million to invest instead of $10 billion.

I'd prefer larger companies to emphasize more stability, modest long-term growth of revenues, profits.... and dividends. Lots of dividends. Sure, when an acquisition really makes sense, go for it -- but a lot of execs seem to think they have to overpay for acquisitions or buy a "bad fit" to show shareholders they are still going for growth. I want the growth in smaller companies and I want the dividends in the larger ones, usually.
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Old 05-31-2011, 02:56 PM   #40
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What I think the problem is with Cisco is that Chambers is not a dividend stock guy, he is a growth guy. Yet he has failed miserably at growth in the last few years.
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