Did Huawei steal Cisco's technology?
Do they pass info. to the Chinese government on sensitive data?
They're all unfounded accusations to fight competition. If the secrets can be stolen that easily, we'll have many companies like Huawei and Chinese should not buy products from Cisco for the same fear. Cisco is using this to protect its bidding from Huawei unfairly.
The fact is there is no trap door to steal data from the network. If there is one, a good percentage of the global traffic has to be routed via the Chinese equipment already. It is a fact that companies spy against each other, no matter it is a Chinese company or an American company.
Cisco and its rival Huawei are riding on the economy. Hence I expect Cisco's stock price will fluctuate with today's range (as of 2012) and it will take off after 2 or 3 years hopefully when the global economy recovers. It will compete with Huawei as their research and manufacture costs are far lower than the US. Huawei's products are very competitive and will capture market shares outside US. The margin of the industry will still be favorable.
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(c) TonyP4 2012. Written in 5/16/12. Last updated in 5/16/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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According to an SA contributor, Cisco is 35% below its intrinsic value.
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