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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.19-0.1%Jan 16 9:30 AM EST

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To: RetiredNow who wrote (55951)10/15/2001 4:20:11 PM
From: Stock Farmer  Read Replies (1) of 77400
 
At least we agree on something. That a price under $13 might be compelling. We probably disagree about how far under.... lol...

As to stock buyback? Cash purchases? Sure they could do more of the above. They could also run out of cash very quickly this way too. This is not the same Cisco that everyone did well buying five years ago.

If they spent 16 Billion dollars on a stock buyback, it would raise their EPS from $0.02/share to $0.02/share and totally deplete their warchest.

If they spent $16 Billion dollars buying routers from themselves, taking delivery, and then crushing them it would generate equivalent economic value for shareholders as a stock buyback, but send their EPS through the roof.

Should they do that too?

John.
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