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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.80-0.3%Nov 17 3:59 PM EST

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To: RetiredNow who wrote (48106)2/6/2001 10:40:57 AM
From: Stock Farmer  Read Replies (1) of 77400
 
mindmeld - yes, these are good signs.

Rather than characterize it as "saving nuts for a winter day", I would say that perfectly normal, legal and ethical business practices <as you outlined> have implications when comparing earnings growth between periods.

What may look like stellar earnings growth may actually be collateral benefit of other adjustments occurring in parallel. At the risk of beating on a dead horse, if inventory goes up more than earnings... this is not good news at all.

Would it be moral or ethical for a company to intentionally allow the inventory manager to stock up? Sure. The stock market is a place for adults to make informed decisions.

As a point of curiosity, did you run this check on the Q1 results? If so, what was your interpretation?

John.
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