Saturna Capital Institutional Investing's Paul Meeks Rolls Out The Tech Talk
Paul Meeks, Saturna Capital Institutional Investing director of tech, appeared on CNBC's Squawk Box Friday morning, where he talked about Cisco (NASDAQ: CSCO) CEO John Chambers' comments on yesterday's show in which he discussed some of the company's recent numbers and decisions. He also talked about Dell's (NASDAQ: DELL) struggles in the evolving tech world.
Cisco met analysts' expectations, their guidance was nearly aligned, Meeks said, yet they still fired 4,000 of 80,000 employees. He noted that Chambers didn't cite that last year, the company only had 66,000 employees.
"So they're up substantially, but they are cutting about a third on the incremental employees that they've added in the last year," said Meeks.
Meek believes that holding onto Cisco's stock is worthwhile.
The tech expert also talked Dell, saying that things are bad for the company, which he believes isn't facing a transitional problem, but a "secular decline," said Meeks.
"That's why when this company first delved into going private, a lot of venture capitalists and private equity firms looked at the company, and 10, 20 years ago this would've been a marquee deal that everybody would want to be involved in," said Meeks.
"But nobody wanted this deal, because the PC business is in a bad way."
Dell has viewed the decline in the PC industry, Meeks said, going on to say that the leadership they've been under as a public company failed to make some pivotal changes.
"What makes us all think that as a private company they're going to do it better?" Meeks dished out.
At the time of this writing, Jason Cunningham had no position in the mentioned equities.
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