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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 75.23

-0.5%

3:59 PM EST

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To: bofp who wrote (62796)	1/28/2003 6:13:07 PM
From: RetiredNow	of 77400

Right, bofp. Good post. I think John's contention is that Cisco hasn't delivered a whole lot of adjusted earnings in his estimation over the last 10 years, so there seems to be little chance that they will do so in the future. I on the other hand believe that Cisco has used all of that money they received from shareholders and free cash flow to build a tremendous wealth generation machine. But here's the caveat: management still has their hand on the off switch. They need to flip the switch to on. The way to do this in my opinion is to drastically curtail stock options issuance, use cash in lieu of options in their acquisitions, institute a steady, long term buy-back program, and potentially consider issuing dividends every quarter. If they do those things, then that will turn the tremendous free cash flow machine towards benefitting shareholders most of all. That is the only thing that has been lacking in the past. I think John Shannon is right when he says that the company and employees benefitted the most from the last 10 years. So now it's time for shareholders to get their piece of the pie.

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