This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Five Dumbest Things on Wall Street This Week

Chambers of Arabia
Cisco and the Connected Kingdom

5. Prophet Margin

Cisco (CSCO - Get Report) is ready to strike black gold.

With the price of oil soaring into the low $70s, Cisco said Tuesday it would invest $265 million over five years in Saudi Arabia. Cisco plans investments staffing, leasing and finance, innovation hubs, public-private partnerships, education and philanthropy.

The Arab nation is the world's 29th largest economy and proud owner of a quarter of the world's oil reserves. But that's not what appeals to the San Jose, Calif., company's big-picture CEO, John Chambers (pictured at right).

"Saudi Arabia is experiencing a transformation as it expands its economic growth opportunities into new sectors using information technology," Chambers says. "Today's announcement of our investment plans in Saudi Arabia reflects our alignment with the country's focus on entrepreneurship, innovation and education, which we believe will help drive the 21st century global economy."

Entrepreneurship and innovation may not yet be synonymous with Saudi Arabia. For now the kingdom may be better known for sex segregation, corporal punishment and religious restriction. But as always, Chambers is seeing well into what is certain to be a bright and profitable future.

"As Saudi Arabia transforms itself into a Connected Kingdom, it is well-positioned to leapfrog more traditional markets in terms of technology adoption," Cisco's press release blares. "A recent Momentum Research Group study aimed at measuring the productivity effect of IT compared government and healthcare operations and services in Saudi Arabia to countries in Europe. The study found that Saudi Arabia was leading European countries in several areas, including the adoption of new technologies such as IP telephony and voice over IP and had a larger increase in the number of citizens using their services."

Let no one accuse Cisco of repressing the profit motive.

Dumb-o-Meter score: 75. Who knows, Chambers may call oil Texas Tea.

In our award-winning effort to enrich the reader experience, the Five Dumbest Things Lab now scores each item using our proprietary Dumb-o-Meter. This cutting-edge technology employs a finely calibrated, 100-point scale measuring sheer Dumbness, as calculated via a closely guarded secret formula.

Got your own idea for the dumbest thing of the week? Let us know.

Want to get your Five Dumbest in the mail? It's easy. Just become a TSC member -- it's free -- and you'll receive the Five Dumbest in our Before the Bell email newsletter every Friday. The rest of the week, before each trading day, Before the Bell gives you a comprehensive look at the stocks expected to move the market, plus access to a sampling of our premium content from RealMoney. Click here to sign up for Before the Bell!

5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.44 -195.77 -1.13%
S&P 500 2,004.92 -24.63 -1.21%
NASDAQ 4,643.9460 -37.5510 -0.80%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs