The holiday would allow Cisco to import its accumulated foreign profits home, without paying a second government tax. Given that Chambers is now laying off thousands of workers, the pitch has lost legitimacy as the selling point to the government was that repatriation would catalyze job creation. While investors continue to avoid Cisco, in large part due to a falling-knife predilection, its business, in the opinion of many, is fixable. It has top market share, by a wide margin, no less, in global switches and routers and its products are considered top notch. Thus, convincing stock investors of a turnaround story may not be all that tough. In fact, calling Cisco a turnaround story is a bit far-fetched. Market participants seem to have overreacted to Cisco's woes over the past 12 months and that overreaction is eliciting a response from management. Provided that the economy maintains a steady, positive trajectory, Cisco shares may be due for a major optimism-induced rally in coming weeks.
-- Written by Jake Lynch in Boston.
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