Negociação coletiva garante até seis semanas de férias por ano

[tonitogomez]

"Cisco's Misguided Buyback"

By Jim Cramer
RealMoney Columnist
4/6/2011 10:12 AM EDT

"Maybe John Chambers of Cisco (CSCO - commentary - Trade Now) fancies himself as a stock trader. Who else, other than a mutual or hedge fund, has spent $70 billion on stock in the last decade?

That's right, he's spent $70 billion buying back stock, and the company's only worth $90 billion! Not only that, but he's got a cost basis of $20, according to Barclays Capital. The stock's at $17.40.

So not only is he a stock trader, he's a terrible one. When he should have been selling stock, he was buying. He's down more than 12% during the decade. He should have just bought Treasuries. Or better, he should have bought the S&P 500, which was up 15.7% during this period!

The fact is, though, he shouldn't have been buying any stock at all. He would have done better doing what I like CEOs to do: offer a bountiful dividend if he can't figure out how to grow. When a CEO pays a dividend, he's not playing the market. He's giving shareholders a real return. He's not boosting earnings-per-share growth, and he's not allowing managers to make more money in options -- the main reason these execs buy back stocks so plentifully, and something I hate. A buyback also helps people sell stock better, and who needs that if you are an existing shareholder?

Of course, it wasn't as if Chambers didn't try to figure it out. He just got it wrong with this foray into the low-margin consumer business. The New York Times' always-excellent "Breaking Views" column talks about how the company's spent $34 billion making acquisitions out of its core enterprise bailiwick and into the consumer sector. People may be familiar with Linksys, the home networking division. You've seen the box. And you've probably seen Scientific Atlanta's box in your house, too. All these have done is pull down margins and waste cash. You add up the buybacks and the acquisitions, and you have more than the market cap of the company. With nothing to show for it.

Meanwhile, Juniper Networks (JNPR - commentary - Trade Now) is carving out the high end of its best business, the router business, and Hewlett-Packard (HPQ - commentary - Trade Now) and the Chinese are encroaching on the low end. While wasting money and time buying back stock and moving into the consumer business, Chambers has lost his way in his real business: networking.

Of course, now he wants to dismantle what he built and start paying a big dividend. Except the dividend isn't that big. He talked about offering a 1%-2% dividend yield, and he's not even getting near the high end of the yield range despite the decline in the stock, the worst way to offer a big yield.

Yet, despite all of the earnings misses, despite the bungled strategy, Chambers seems more ensconced in the job than ever, just as smug and certain of himself as ever and just as confident undoing his vision of Cisco as when he charted the wrongheaded path to begin with.

Put simply: Cisco has a board of directors. Can they not see that Chambers has missed quarter after quarter, gone down the wrong strategy path, had his core business under attack all the while playing stock trader?

My advice: if they are going to continue this path, at least get someone who knows stocks and prices, even if he doesn't know networking.

I am beginning to believe this guy knows neither.

At the time of publication, Cramer was long JNPR. "

(in www.realmoney.com)

Quer dizer que a subida recente da Cisco nao passou de um buyback do Cramer??
Deixo o grafico.

[atomez]

Muito boa análise. De facto a Cisco parece não saber o que fazer ao cash que acumulou no seu lucrativo core business, compraram imensas empresas com o objetivo de crescer e aquirir market share, mas o resultado não foi nada de especial.

[Automech]

Excelente artigo para quem acredita que a malta de dentro é que sabe e que se os gestores estão a comprar é porque é bom.

Este foi em grande escala devido à dimensão das compras, mas há inúmeros casos similares por aí.

Basta ir espreitando de vez em quando os SEC fillings e passado uns tempos ver o que aconteceu.

[Ulisses Pereira]

"Cisco's Misguided Buyback"

By Jim Cramer
RealMoney Columnist
4/6/2011 10:12 AM EDT

"Maybe John Chambers of Cisco (CSCO - commentary - Trade Now) fancies himself as a stock trader. Who else, other than a mutual or hedge fund, has spent $70 billion on stock in the last decade?

That's right, he's spent $70 billion buying back stock, and the company's only worth $90 billion! Not only that, but he's got a cost basis of $20, according to Barclays Capital. The stock's at $17.40.

So not only is he a stock trader, he's a terrible one. When he should have been selling stock, he was buying. He's down more than 12% during the decade. He should have just bought Treasuries. Or better, he should have bought the S&P 500, which was up 15.7% during this period!

The fact is, though, he shouldn't have been buying any stock at all. He would have done better doing what I like CEOs to do: offer a bountiful dividend if he can't figure out how to grow. When a CEO pays a dividend, he's not playing the market. He's giving shareholders a real return. He's not boosting earnings-per-share growth, and he's not allowing managers to make more money in options -- the main reason these execs buy back stocks so plentifully, and something I hate. A buyback also helps people sell stock better, and who needs that if you are an existing shareholder?

Of course, it wasn't as if Chambers didn't try to figure it out. He just got it wrong with this foray into the low-margin consumer business. The New York Times' always-excellent "Breaking Views" column talks about how the company's spent $34 billion making acquisitions out of its core enterprise bailiwick and into the consumer sector. People may be familiar with Linksys, the home networking division. You've seen the box. And you've probably seen Scientific Atlanta's box in your house, too. All these have done is pull down margins and waste cash. You add up the buybacks and the acquisitions, and you have more than the market cap of the company. With nothing to show for it.

Meanwhile, Juniper Networks (JNPR - commentary - Trade Now) is carving out the high end of its best business, the router business, and Hewlett-Packard (HPQ - commentary - Trade Now) and the Chinese are encroaching on the low end. While wasting money and time buying back stock and moving into the consumer business, Chambers has lost his way in his real business: networking.

Of course, now he wants to dismantle what he built and start paying a big dividend. Except the dividend isn't that big. He talked about offering a 1%-2% dividend yield, and he's not even getting near the high end of the yield range despite the decline in the stock, the worst way to offer a big yield.

Yet, despite all of the earnings misses, despite the bungled strategy, Chambers seems more ensconced in the job than ever, just as smug and certain of himself as ever and just as confident undoing his vision of Cisco as when he charted the wrongheaded path to begin with.

Put simply: Cisco has a board of directors. Can they not see that Chambers has missed quarter after quarter, gone down the wrong strategy path, had his core business under attack all the while playing stock trader?

My advice: if they are going to continue this path, at least get someone who knows stocks and prices, even if he doesn't know networking.

I am beginning to believe this guy knows neither.

At the time of publication, Cramer was long JNPR. "

(in www.realmoney.com)