Cisco Systems, Inc. (CSCO) Message Board

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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: The Phoenix who wrote (44713)	12/18/2000 10:13:02 AM
From: Stock Farmer	Read Replies (2) of 77400

Either way, CSCO takes a smaller net tax benefit. If your postulate is correct, then they just take a larger portion of a smaller number sooner. Poor employees having to figure out whether to exercise or not... If they think it's going to go higher then they should buy & hold at whatever price when it vests. If they think it's going to go lower, then they can either (a) exercise to sell and take the tax bite, or (b) hold and take the equity bite, but they shouldn't exercise to hold and sit on an equity they think will decline! So your postulate works for those who have options already vested and who will sit on them waiting for the bottom, exercise at the bottom etc. Might see a rush of exercise between now and whenever if a true bottom forms. Might. The total psychology becomes a bit tied up in knots. In the end, I'm watching the net cash flows over the next few quarters very, very, very carefully. Very difficult to predict here. Angels & pin-heads and all. John.

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