<<OK. So what you are saying is that risky customer lending practices only show up all at once. There are no indicators because Cisco is incredibly ingenious about hiding the trail.>>
No, a precipitating event needs to occur to cause the high risk debtors to stop paying their bills. Money has just been to easy to come by for the dot-bombs. Next week's report will be very interesting.
<<Your assumptions are all wrong. Your leading indicator for bad lending practices is bad debt, AR growth outpacing revenues, increasing DSO, decreasing or choppy cash flows, etc. Cisco shows none of these symptoms.>>
AR growth outpaced sales growth last qtr. (nearly 2 to 1) GVTucker and I had a real nice chat about it, go back and read the posts for more info ;)
<<One disclosure for you, I watch these things like a hawk, because I have always been dumbfounded by Cisco's consistency and ability to deliver. So being a CPA, I look for these things constantly within Cisco's F/S and haven't found anything that really stands out. All the hallaballoo about options overstating earnings is ludicrous as well. Sure it doesn't come out as an expense, but options do dilute EPS, so it does show up in the number analysts use to value companies. Anyway, enough said, let's move on to newer topics.>>
F/S diluted EPS does not consider the P/L impact of the value of the options.
1999 CSCO diluted EPS APB 25: .62
1999 CSCO diluted EPS SFAS 123: .47
<<So being a CPA>>
You CPAs are all alike, aren't you. <g> |
