Cisco’s Stock Buybacks

Seriously, it’s time we had an intervention for Cisco (CSCO). This company needs to STOP buying back its stock. It’s getting out of control. They just announced another $7 billion buyback. For the love of god, someone make them stop.
This company is sitting on a mountain of cash (nearly $20 billion) and it’s getting thrown away. What’s wrong with a nice little dividend? Too much cash is not a good thing for a company. This is what I like to call the Bladder Theory of Corporate Finance. Cisco has wasted billions of dollars on buying back a stock that has gone nowhere.
We need to plan it for the evening when Cisco gets back from the office. He’ll open the door, and all of us will be standing there. Then someone needs to say, “Dude, we need to talk.” At first, he’ll be all nervous, “Hey, what’s everyone doing here.” But deep down, he knows exactly why we’re there.
I’m sorry but it needs to happen.

Posted by on November 16th, 2006 at 10:09 am


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