Cisco on the Run
Cisco (CSCO) chief John Chambers has his own way of dealing with bad news: He runs away from it.
At least that's what Chambers said Wednesday, when he told analysts how frustrated he has gotten with the gloomy economic forecasts that have increasingly prevailed in recent months.
Chambers made his point during a conference call after Cisco
Chambers says the problem was largely isolated to "dramatic decreases" in networking equipment orders from financial institutions. But with its broad product portfolio and its global strength, Cisco was able to shrug off the so-called credit crunch.Outfits such as Morgan Stanley (MS) and AIG (AIG) were the latest financial shops to take multibillion-dollar charges Wednesday on soured mortgage-related assets. Analysts on the call asked Chambers -- who enjoys the role of a self-made global economist during his business outlook discussions -- if the weakened financial health of big banks was a growing concern beyond the U.S. Chambers said sluggish tech spending here was not spreading to other markets, adding that he wasn't seeing any "issues of concern" among customers outside the U.S. In his run as chief of Cisco, Chambers has always had an optimistic take on the health of world commerce. On his last earnings call in August, he raised his level of optimism above that already high base, saying: "This is the strongest global economy I've been a part of." So it's probably no surprise that he has little tolerance for a less than sunny view of the money world. On the call Wednesday Chambers described how negativism -- presumably on the business channel CNBC -- drove him out of his house. "I have a favorite TV show in the morning that I run with," Chambers said on the conference call. "I exercise on my exercise machine, but they were so pessimistic in terms of their guess in the number of economists that were predicting economic slowdown that I actually had to start running outside in order to stay in shape." Chambers' reaction to the deflating real estate bubble may seem a little too familiar to some tech investors who recall a similarly
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV