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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 73.87

-0.1%

Jan 9 9:30 AM EST

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To: GVTucker who wrote (35353)	5/10/2000 5:38:00 PM
From: lawdog	Read Replies (1) of 77400

GV, I take you haven't read any of the studies regarding the limited long-term real economic impact of share buybacks. Or have you read them and just disagree with their conclusion? Either way, it was not ignorant. It is possible that the stmt was could be viewed as too extreme. Tech share buybacks are among the worst, though, if I remember the article correctly (I believe it mentioned CPQ buybacks) The argument for cash dividends is that you have the cash in hand. Nobody can take it away from you. The cash used for the buyback causes a temp. real increase in the share price by reducing dilution. This is offset when the shares are distributed and you are left with no real economic impact. If the shares were permanently retired then it might provide a more lasting impact. Even then , though, you are always better with the cash in hand in most instances. I'm not going to rewrite the article and I haven't read it for a long time. I assure you it had some basis in fact. I sugest you look for it if you have not read it. If you have read it or similar studies just say so. You don't have to be so coarse.

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