Cisco Systems, Inc. (CSCO) Message Board

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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 77.04

-0.5%

3:59 PM EST

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To: Boca_PETE who wrote (57663)	2/19/2002 1:12:57 PM
From: RetiredNow	Read Replies (2) of 77400

Interesting concepts Pete. My only problem with it is that the company's stock price is harmed in the long run. The net result of this transfer of cash from external to internal shareholders and the company itself is that o/s shares continue to grow at an alarming rate. That means that earnings on a per share basis continue to shrink. It's getting harder for the company to provide decent EPS because the earnings are split over a larger set of shares. That means that discounted cash flow per share suffers and ultimately the stock price suffers. So these shenanigans are cost shareholders coming and going. Coming - cash transfer to internal shareholders. Going - long term loss of share price expansion potential.

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