SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.56+0.3%1:26 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: The Phoenix who wrote (43130)11/8/2000 2:37:48 PM
From: Wyätt Gwyön  Read Replies (1) of 77400
 
I looked at your post. It says nothing about the vaunted cash flow. My point is that the cash flow growth is a side-effect of options exercises by employees. It is real only as long as the stock price is high. If the stock price falls far enough, Cisco's strategy will have to change. Like a private business, it would have to pay the market rate for cash wages; would have to expense those wages; and would no longer receive the tax benefit from the government. Thereby reducing cash flow and retained earnings. To me, it seems Cisco's business is really dependent on a high stock price.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext