CSCO - where's the bottom?!?!? Bear Thread Message Board

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Technology Stocks : CSCO - where's the bottom?!?!? Bear Thread

CSCO 73.99

+3.1%

Nov 12 3:59 PM EST

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To: Wyätt Gwyön who wrote (108)	11/23/2000 3:24:10 PM
From: Stock Farmer	of 253

Mucho gracias! The put warrant business as a hedge against stock options introduces a neat twist. In the end, companies like MSFT and DELL which have anti-dilutive option plans via buy back end up being exposed to dilution in a downward market (through net share settlement) to the difference between the present value of the put premium received and the amount to which put warrants are ITM. Companies like CSCO expose shareholders to dilution in an up market as they are restricted from buyback. Truth be told, I'd prefer the latter to the former. What I did find amusing is here's an article which calls 1-3% an "extrordinary" dilution, yet CSCO has a pending dilution closer to 12% (900 M options against 7B base). Yet CSCO shareholders don't seems to care. I guess as long as people are willing to wear their proforma colored glasses, everything looks rosy ;) John.

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