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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (30620)4/10/2008 10:02:14 PM
From: Spekulatius  Read Replies (1) of 78745
 
CSCO, well Jurgis, those would be the GAAP earnings numbers. they reduce earnings by 15-20%. Annual stock option dilution is about 2% and has been shrinking slowly. you need to relate that to the growth, which has been 12%+ during the last few years.

So, the way i look at it they are paying out around 15% of their earnings power (or 155 of their growth) to their employees, on top of their salaries. it's a high number but not absurdly high if they can keep up their growth.
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