Wednesday, September 14, 2011


The Dutch Finance Minister wants an orderly Greek default, which he sees as inevitable.

Here is a summary of some of the highlights from today's Cisco analyst day.

1. Chambers sees nearly all of his customers maintaining or exceeding year-ago spending.
2. Growth expectations by sector (2011-2014):
* routing (5% to 7%);
* switching (2% to 4%);
* services and collaboration (13% to 15%);
* video(7% to 9%);
* global enterprise (6% to 9%);
* global commercial (9%-11%);
* global public sector (2%-6%, probably closer to low end with government cutbacks); and
* global service provider (5%-7%).
3. Growth expectations by geography:
* emerging countries (14% to 16%);
* Americas 8%;
* Europe, Middle East and Africa around 5%;
* Asia Pacific, Japan and Greater China 10%; and
* total 7% to 8%.
4. Aggregate Cisco profit growth better than sales growth.
5. Continued active external acquisition-based growth (preferably mid-sized deals) seen.

P.S. -- Cisco's Chambers has disappointed investors for some time. Accordingly and based on history, most investors should question many of the above expectations.

As reflected over by Miller Tabak's Peter Boockvar (below), the German Prime Minster seems to be in denial and in no rush to resolve the eurozone crisis:

German PM Merkel in an interview is not speaking like someone who is prepping the market for an imminent Greek default. She sounds more like a control politician who is in fantasyland with what is going on around her, with all due respect. Here are quotes from the newservices, "Greece default won't solve debt crisis...No quick one word solution to debt crisis...Must allow time to solve euro debt crisis...All we do in euro area needs to be controlled...Need to know consequences of actions in euro area...Want to find way to meet Finnish wish for collateral...Confident to find solution on Greece collateral...EFSF secondary market interventions to help minimize contagion." Ugh is all I have to say on this.

“Insanity: doing the same thing over and over again and expecting different results.”

-- Albert Einstein

Until we stop kicking the can down the road, stocks are not going to gain much ground.