It’s been a while since I posted a blog and a lot has happened. John Chambers is now officially a great contrary indicator for the economy and stock market. Since Chambers started crowing about how great business was, the economy and stock market have gone straight down and Cisco’s stock is off about 24% – exactly what we feared would happen.
Nonetheless, Cisco is now an intriguing investment in part due to the company’s change in organizational focus. To his credit Chambers is embracing the tenets of collective wisdom by emphasizing teamwork and innovation instead of relying on his direction only. Specifically, the company set up an internal wiki called I-Zone to generate business ideas. I believe this effort will pay dividends for the company in the future.
