The Cisco Kid

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Money isn't usually funny. Even funny money isn't all that funny. But you have to chuckle at the recent wave of share repurchase announcements. Cisco Systems (Nasdaq: CSCO) became the latest tech company to announce a massive buyback program, earmarking $7 billion for future repurchases.

Still waiting for the punch line? Well, it's that the joke is old, see. This is Cisco's fourth repurchase announcement in two years. In total, $20 billion has been set aside for these stock buybacks. However, as of this summer, the company had spent just $7.8 billion acquiring outstanding shares.

Don't worry. Cisco isn't alone. On Friday, Hewlett-Packard (NYSE: HPQ) revealed its third buyback over the past year despite still having room to buy, apparently, under its earlier announcements.

Wouldn't it be great if Wall Street operated like one of those all-you-can-eat rib joints? You know, where you can't ask for seconds until you've cleaned your plate?

Clearly, there is more to the science of the buyback than the desire to acquire stock (which, in itself, can be a noble act, assuming the company has the balance sheet to back it up). And, no bones about it, these companies have the cash. But why is Cisco announcing a repurchase after its stock has more than doubled over the past year? Why didn't it buy back more of its shares at the bottom?

The buyback has become a press junket. Just as with the dubious timing of Microsoft's (Nasdaq: MSFT) dividend rollout earlier this year, many companies ripe with balance sheet greenery are using their cash the way a hard body flexes at the beach when the pretty faces stroll by. It's mostly for show.

And it's not just tech stocks. Our own David Marino-Nachison took a closer look at Gillette's (NYSE: G) 50-million share buyback announcement last week. Yes, even the razor makers know when to take their cuts, as Gillette had an unfilled balance on its previous repurchase.

So, Cisco, we get the point. You have a lot of money. You want us all to know that your stock should be perceived as a bargain despite its recent surge. Got it. But do us proud with that earmarked sum. Act on those words -- and don't say another word until the act is complete.

What do you think of Cisco's buyback? Any thoughts on the company's fundamentals above and beyond its earmarked sums? If you're a fan of Cisco, are you a router rooter? All this and more -- in the Cisco discussion board. Only on Fool.com.