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Cisco's stock price drops -3.57% during its new Cius tablet announcement
Tue, 6/29/10 - 7:05pm    View comments

Today at Cisco Live in Las Vegas, Cisco CEO John Chambers introduced a new mobile collaboration business tablet called the Cius.

It appears to me the main purpose of Cisco's new Cius is to help facilitate further acceptance of Cisco's suite of collaboration applications.

Customer trials will begin during Cisco's calendar 3Q 2010 with general availability around calendar 1Q 2011, the price is expected to be under $1,000.

At your desk, the Cius will rest in a wired docking station and when you're ready to jet, you can take it with you.

The Cius is a thin client that can coexist or replace a thick Windows PC client.

Curiously, during the same time Chambers was introducing the Cius in Las Vegas, Cisco's stock price dropped -3.57%.

Also simultaneously today, the U.S. Securities and Exchange Commission revealed in a Form 8-K filing that Cisco insiders - Randy Pond, Mark Chandler and Larry Carter were planning to sell 1,575,266 shares of Cisco stock (currently valued at $34 million).

It's my personal opinion that Cisco's top executives merely own what I call "token shares" of Cisco stock. For Cisco executives, the game appears (at least in my opinion) to be one of constantly taking their "poker chips" (i.e. Cisco stock) off the table as fast as they can exercise their stock options.

I authored a post more than a month ago about how Cisco CEO John Chambers appeared to lack a "true conviction" that Cisco's stock price would appreciate in value, well, that post is looking pretty on-the-spot at this point.

Finally, I feel vindicated posting that Chambers exhibited perfect timing selling $128.5 million of his Cisco stock in a recent 3 month time period.

Cisco's stock price dropped -3.57% during its new Cius tablet announcement

Source: Yahoo! Finance

What's your take on the new Cius and why do you think Cisco's stock price dropped during the announcement?

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