Replies to post #72155 on Zeev's Turnips Patch-No Politics (ZEEV)

[Smart_Money]

Those 200.00 parts that cost 10.00 Cisco bought eventually got passed on to the consumer. Now that the consumer is all tapped out CSCO is finding ways to get the "reported" 1 bllion net income. Do you realise how much money is moving around for CSCO to make 1 Billion net income. The street is blind sided by this and are not asking the right questions. Everyone is still counting on the horse to keep ahead of the race and if for some reason CSCO injures or breaks a leg, the street will not hesitate to shoot it. Until then don't expect the right question to be asked.

[punkle]

OK, let me clarify a bit. I hold no position in CSCO but after working with them for the past 10 years of so, here's what I like about them:

- They have a tremendous customer information system where they really know everything about their customers and partners. It is truly world class.
- They can close their books in one day on their finance system. Look how quick they report after their quarter ends.
- They are a great partner. At one software company that I worked, they were truly involved in helping us close 50% of our deals.
- They have a tremendous culture. I know many people who work there and can't think of one that wouldn't want to work there. They are all still drinking the CSCO Kool Aid and very proud to be a CSCO employee.
- Their customer visit center is run extremely professionally and customers generally love doing business with them even when they know they can get similar products cheaper elsewhere.
- Their sales people are very efficient and work very hard to make their numbers. They build loyalty with customers, employees, and partners.
- They are better at Mergers and Acquisitions than any company I've seen, especially assimilating the new employees into the CSCO culture.

I have no idea if they are cooking the books so won't comment but if there's any company in this world that can produce phenomenal margins and react very quickly to the changing conditions around them, it's CSCO.

They probably won't be able to fend off the onslaught of a deteriorating economy but they absolutely deserve credit where it is due.