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CSCO - Cisco


Viking

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Guest valueInv

I wonder if Cisco can sell SND products for very low cost and make money on the service agreements...They have a decent amount of revenue from recurring services...

You'd be looking at a much smaller company that what it is today.

 

Certainly, but I don't really see any other option.

 

They had plenty of options but they squandered most of them. Their remaining options are dwindling day by day.

My guess for what's coming up next - Chambers "retires".

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Guest wellmont

Just popped in to say that I love to hear John Chambers say "cash".

 

I would love to hear him say my wife wants me around the house more. :)

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Just popped in to say that I love to hear John Chambers say "cash".

 

I would love to hear him say my wife wants me around the house more. :)

 

Yeah he went a different direction on that with the compensation and reimbursement for planes and whatnot, didn't he?  He doubled the "cayuche" he took home to mama.  CSCO shareholders need an Icahn to the rescue.

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  • 1 year later...

Is anyone still following this company?

 

Net cash of +/- 35 bn on mcap of 131, EV around 98 bn. I haven't done any digging but probably the cash is held overseas so let's take a discount of 30%, would indicate cash of 25 bn and thus EV around 105 bn.

 

Gross margins are supposed to be doomed and go under levels of 60% yet history shows otherwise. Expected to generate 2.27 in earnings 2016 with a current price of 26 (multiple even lower if accounting for the net cash).

 

FCF generation is around 9.5 bn including stock based expense, +/- 9% yield. I saw the company pop up due to its CES announcement that it is partnering with Charter for cloud based set up boxes.. They also seem at the forefront of the smart cities.

 

The company is slightly out of my circle of competence but the valuation does not seem very demanding.. Anyone more familiar with the industry that cares to weigh in??

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