20% of QQQQ is AAPL CSCO is doing poorly and it is mismanaged. They keep spending big money on acquisitions and then squander the opportunities letting competitors eat them for lunch in those sectors. Here is a partial list #1 Wheelgroup #2 Protego #3 Arrowpoint #4 Perfigo #5 Aironet. The list goes on billions upon billions as Carl Sagan would say, burned in effigy. Cisco is notorious for printing shares to give to insiders, then announce buybacks to buy those newly minted shares. With the rest spent on large and overpriced acquisitions to build a monster company from all kinds of spare bolts,tape and balsa wood and the CEO being the pilot with no flight hours just about to get in the cockpit with poor shareholders as passengers. Cisco is too heavy in employee count, lots of mediocre employees in the company. Cisco is like a canoe with one oar in the water. They have no clue what to do, now its tablets with the overpriced cisco Cius. Then they buy a toy video camera company (flip) now they want to sell servers. Whats next? Cisco reminds me of the gogo years conglomerates trying to sell toothpaste,routers, computers and go karts. They are gonna end up like AMF or Litton or Gulf and Western or Ling Temco Vought. And with the Republicans in play and ready to cut government (thats what they say) This will cut big time into future sales as government money is slashed. Thank you Cisco. CISCO SYS INC COM NOV-10 $22.00 PUT 0.08 + 0.01 (+14.29%) 0.07 x87 0.10 x150 0.07 - 0.09 1,373
Asmittedly, acquisitions tend to benefit CEO's of both companies but shareholder benefits are not always so obvious. One of the best examples is the acquisition of Compaq by HP a few years back. HP shareholders got a piece of desktop building business with razor-thin margins in exchange for a chunk of unique highly-profitable laser printer business.