|Why would CSCO pay premium prices for such a large and mature company?
Posted: 7/26/2012 12:53:57 AM
They have similar profit margins, VM sells at a more premium price to sales and profits than CSCO.
Look at the chart on VM, it totally looks like it is going to roll over, pull up a 5 yr chart, its been hitting against 80 several times and watch out if she breaks 80 with some volume.
I dont seem to recall CSCO paying this much for a company, it would be right now a near 40% market cap vs CSCO with no added premium.
It does not look like the kind of acquisition they would make, it would be bad for CSCO shareholders and would not make sense to me..