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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.39+1.3%Nov 19 3:59 PM EST

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To: RetiredNow who wrote (48415)2/7/2001 3:32:10 PM
From: SouthFloridaGuy  Read Replies (2) of 77400
 
Dude, your post shows how little investors actually know about investing.

CSCO's stock would drop tremendously if they use cash to buy overvalued companies because their Return on Assets would be dismal. You see in the old days, they could afford to buy any company in the past because the stock was so overvalued it was virtually like paying 10 cents on the dollar. Now it's soon getting to the point where they cannot use stock nor can they use cash because investors will scratch their head and wonder why they just didn't invest it money market.

A great example would be if CSCO spent $2 billion on a company with similar valuation to Corvis. Do you honestly think the Present Value of Returns from that company would be greater than the returns of investing it in a risk-free rate of 5%???

If you do, then please never invest my money.
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