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Re Cisco A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: Jose Vasquez (IP Logged)
Date: August 3, 2012 10:24AM

Even with compensation included the outstanding amount of shares has drastically been reduced. So if history holds I expect it to keep falling.

Specially considering the amount of shares that Cisco is buying at current low prices.


Stocks Discussed: CSCO, AMAT, HPQ,
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Re Cisco A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: Jose Vasquez (IP Logged)
Date: August 3, 2012 10:25AM

Wow we have many shares in common :)


Stocks Discussed: CSCO, AMAT, HPQ,
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Re Cisco A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: cdubey (IP Logged)
Date: August 3, 2012 10:27AM

@jose: I understand that :)

My question was, whether the strike price of the new options granted as compensation go down when the stock is down ? I think the answer to this question is yes. And if the management rewards itself a lot now (look at the figures: $1.6b worth in 2011), it will come to bite the long term investors in a few years ! I agree that the management wants the stock to go up so that the options they already have do not go to waste.


Stocks Discussed: CSCO, AMAT, HPQ,
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Re Cisco A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: Jose Vasquez (IP Logged)
Date: August 3, 2012 10:37AM

See comment 2 here : [investing.kuchita.com]


Stocks Discussed: CSCO, AMAT, HPQ,
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Re Cisco A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: Jose Vasquez (IP Logged)
Date: August 3, 2012 10:58AM

See comment 3 here : [investing.kuchita.com]


Stocks Discussed: CSCO, AMAT, HPQ,
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Re Cisco A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: cdubey (IP Logged)
Date: August 3, 2012 02:04PM

@Jose: Emulation is the best compliment. :D I am trying to move towards a strict subset but I like ArcelorMittal and ABB too much.


Stocks Discussed: CSCO, AMAT, HPQ,
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Re Cisco A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: Cogitator99 (IP Logged)
Date: August 4, 2012 05:51AM

Jose, Cdubey, great comments. What I'd like to hear though, are your thoughts on CSCO's current valuation? Trading at E/FCF 5x, seems like a lot of negativity has been priced in?


Stocks Discussed: CSCO, AMAT, HPQ,
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Re Cisco A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: cdubey (IP Logged)
Date: August 4, 2012 08:12AM

@Cogitator: Cisco is cheap. At current prices a lot of things need to go wrong for it to be a bad investment.


Stocks Discussed: CSCO, AMAT, HPQ,
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Re Cisco: A Tale of Overcompensation and Overpaying for Acquisitions
Posted by: sunilsingh (IP Logged)
Date: August 4, 2012 07:51PM

Do not be sad about "A Tale of Overcompensation and Overpaying for Acquisitions" It is known as the TRUTH about the VARIABLE FACTORS OF LIFE & our responsibilities (if we care about them).


Stocks Discussed: CSCO, AMAT, HPQ,
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