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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: bambs who wrote (39835)9/12/2000 10:51:57 AM
From: bambs  Read Replies (1) of 77400
 
"Cisco's stock option debt to employees for unexercised options, according to the Wall Street Journal, now exceeds $40 billion and this leveraged debt increases more than $800 million with each $1 increase in the stock price."

"..the impact of pooling which, if included,
would result in a negative taxable income exceeding $13 billion for fiscal 1999 even though Cisco reported a gross
margin of more than $7 billion."

"The most ingenious aspect of Cisco's scheme, however, is that by using a combination of pooling and stock options to understate costs, it can then focus on manipulations of gross revenues and undercut competitors with self financed leases to sustain its pyramid. This is where leasing may indeed play a key role in manipulating what analysts call top line revenue growth."

billparish.com

good night csco,

bambs
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