| The error in the analysis that JS,GV and the articles make is that they assume a corporation can grow revenues and earnings using the methods that LU, USX and other former behemoth corporations, who thought they were invincible, used. The continued growth exhibited by CSCO is enabled by the blend of acquisitions and employee retention, both facilitated by a great management team. They use options to entice employees to produce. As long as they produce, there aren't any losers unless someone's expecting outlandish returns on their investments. CSCO spoiled LTBH shareholders and the last 10 1/2 months have been a rude awakening. If CSCO doesn't meet the challenges they know are out there, then JS, GV, etal. will end up being correct. However, if CSCO continues to meet the challenges then shareholders are the winners. I don't know of too many businesses that succeed when the employees aren't motivated to perform. Options motivate, they're legal, shareholders vote to approve stock incentive plans, and they don't cheat Uncle Sam out of his taxes.knc |
