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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.38-0.5%3:59 PM EST

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To: RetiredNow who wrote (47611)1/31/2001 11:12:15 AM
From: Stock Farmer  Read Replies (1) of 77400
 
Yes - agreed, very interresting to see how things change.

Note that approximately 200 M shares with strikes below $6 exist, average price $4.44. There is a school of thought that says those who wish to exercise to hold will exercise at the lowest possible price to minimize income tax.

The "worthless" options are those granted in the last year or so. Average grant from July 29 99 to July 29 00 was $52.10...

It's not a doom-and-gloom scenario however. CSCO's outstanding option grants represent an "asset" in the range of 20-40 B$ depending on price of their shares. That's not chump change even at the low end. It will be a few years before CSCO's internet business generates this kind of cash.

John.
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