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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chambers' Bold Experiment

Stocks in this article: CSCO

John Chambers is an excited man. Of course if you've followed the CEO and chairman of Cisco (CSCO - Get Report) very long, you also know he is an excitable man.

When things were heading south back in August of 2001, it was Chambers who said that technology sales were falling off a cliff due to a 100-year flood. In August of 2009, Chambers stated that he felt the economy may have reached its "tipping point." Just last week, Chambers announced that he could see "tangible results that the recovery, at least the initial phase of the recovery, is gaining momentum."

Even with a simultaneous announcement of a first quarter profit loss of 19% and a revenue fall of 12%, Chambers was as optimistic as ever. While you can't claim he was solely responsible for a surge in the stock market the next day, he was certainly part of the reason for the sentiment.

Chambers has a credibility that many CEOs dream of. Leaving the senior VP of U.S. Operations position for Wang Laboratories, he joined Cisco in 1991 as senior vice-president of worldwide sales and operations. He became CEO in 1995. In that time, revenues at Cisco have multiplied exponentially from a little over $1 billion annually to over $40 billion. He clearly has the technical background to be seen as understanding his business. More importantly, he has technical savvy combined with vision and guts.

While it may be difficult to grow a business as successfully as Chambers has managed, it is even more difficult to grow a culture that is both innovative and unique. In his August address, Chambers also announced the replacement of Cisco's traditional, top-down decision making with a truly team-oriented system.

1 of 3

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 17,612.39 -60.21 -0.34%
S&P 500 2,042.25 -9.57 -0.47%
NASDAQ 4,737.5550 -20.3240 -0.43%

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