Nortel Networks (NT) Message Board

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Technology Stocks : Nortel Networks (NT)

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To: Ian@SI who wrote (7360)	10/23/2000 3:50:38 PM
From: telecomguy	Read Replies (4) of 14638

But no matter how CSCO buys companies, at the end of the day, theor share profit will be NEGATIVELY impacted by the issuance of new shares to do the acquisition. And it is the expected earnings PER SHARE that drives the share price. Most astute analysts look at discounted Net Present Value of future expected net cashflow generated by earnings..........therefore as much as I hate to support CSCO, this is all BS that Barron's is spinning. There is NOTHING NEW under the sun I am afraid. CSCO is valued very high because their PER SHARE expected net positive cashflow is high. This means that CSCO has purchased wisely becuase as much as they have issued new shares to buy companies, those acquired companies have obviously brought positive earning streams (aka CASHFLOW) to CSCO. You can't really fault a company for that. Again, as Mindmeld has stated, look at CSCO's cashflow versus Lucent's. Nothing else matters. Good companies spin off nice cashflow (look at Microsoft, Intel, GE, etc.etc.). After all, isn't business all about making MONEY (i.e. CASH) ??????

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