Hi mindmeld, investors, in the aggregate, sometimes, are smarter than we give them credit for, because collectively, they also make huge mistakes.
It is also possible that investors will view future CSCO P/L statements with a silent question mark that can not be cleared by looking into the balance sheets. All analysts of average and higher intelligence (there are, by definition, some) will be digging into the issue of "Mr Chambers, just how much of written off inventory was sold this quarter?"
Transparency in accounting is important and will become more so once market reforms are instituted and congressional hearings over. Yes, this is the script we are following now, along with the lawyers frenzying. CSCO's brilliance changes not one iota in their free cash flow over time and only exposes it to charges of chicanery, and, legal fees. Of course, CSCO does not give a hoot, because of the general weakness of moral character in this sinners bubble market, populated by the Larry Ellisons and Jeff Bezos.
I will stay with my 2001 low for CSCO at USD 8, adjusting for and splits or reverse splits.
Chugs, Jay |
