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Financing Risk Looms Despite Cisco's Cautious Stance

 

Just as Cisco (CSCO Quote) claws away at its mismanaged mountain of inventory, Wall Street is stumbling over another heap of trouble: Loans to cash-strapped customers.

Inventory Mess Shows Cisco Can't Turn on a Dime
Making Their Own Troubles: Cisco Highlights the Inventory Woes at Tech Shops
Sector Watch: Networkers Mixed a Day After Cisco's Warning
Analysts Again Say Cisco's Worst May be Behind It
It's Not the Heat, It's the Volatility, Cisco Options Show
Cisco News Is Seen as Lifting Some Tech Boats and Sinking Others

Time and time again, Cisco has said it would be cautious in lending customers money with which to buy equipment and meet operating costs, a practice known as vendor financing. The San Jose, Calif.-based networker spoke of its caution most recently on Monday, during its earnings warning. But a recent financing deal, combined with a loan default Monday at upstart telco Winstar (WCII Quote), has several analysts and investors saying Cisco is throwing good money after bad.

Promises, Promises

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