Tuesday, September 14, 2010

Tidbits from the opening session of the Cisco Financial Analyst Conference September 2010

If you watch John Chambers' presentation on the opening session of the Cisco Financial Analyst Conference of today, it is difficult not to make a couple of these observations:
  1. The demonstration of a highly collaborative educational environment is very eye-opening, and it amplifies the distinction between an Apple iPad and a Cisco Cius. The power of collaborative information exchange seems to have the so-called network effect built into it. Once students around the world start making use of this device, it is easy to imagine Tom Friedman's recent observation: In a flat world where everyone has access to everything, values matter more than ever.
  2. John presents excellent arguments as to why commoditization of Cisco's market segment is a distant one: Architectural play, that involves numerous products and processes integrating them. A single product solution cannot even come close. The slide presented on this topic, shown here, is very self-explanatory.

  3. Finally, it looks like there will be dividend on Cisco stock, with 1-2% yield, starting from FY 2011, and we are already in the new fiscal year. With the stock closing at $21.45 (+$0.19) today, you can expect to get dividend income anywhere from $0.21 to $0.42 per share of stock; or, even if the stock doubled by July 2011, you may be able expect $0.42, or 1%.
Disclaimer: I am an individual investor in Cisco stock.

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