Cisco Talks The Talk, But Can They Walk The Walk?

OK, back to the markets and my soapbox. Does anyone else out there feel a little
uneasy about the idea of Cisco Systems
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leading us out of the economic downturn? I mean, I love their technology. I
think they have remarkable management and fabulous market share. But aren’t
they the same company that didn’t see the economic downturn coming until it
enveloped them? It’s hard to believe that a company that tracks sales over the
net and is known for its ruthlessness with its sales force was surprised by what
nearly became a recession.

If we take the leap of faith that CSCO was fooled and not just hoping it could
make up for one down quarter with a strong follow-up quarter, then why would any
of us think today’s conference call is anything but a PR stunt? You can’t
have it both ways. Either Chambers and his team are the hot shots we all thought
they were at this time last year, or they are as clueless about the economic
environment as the rest of us. In other words, if they couldn’t tell what was
coming in the fourth quarter, who cares what they think the second half is going
to be like? Nonetheless, like many of you, I will be listening to their call
this evening! Apparently Morgan Stanley is a believer, as they upgraded CSCO to
an outperform from neutral this morning.