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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.01-1.9%Dec 17 3:59 PM EST

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To: Jacob Snyder who wrote (61375)9/19/2002 5:37:40 PM
From: chaz  Read Replies (1) of 77400
 
Jacob...

1. The continued Creative Accounting puts a hard ceiling on the stock price. Even once the recession is over, and IT budgets come back, investors won't allow the stock price to sustain any move over 20. It becomes routine for analyst reports, and the business press, to state EPS (and value the stock), with options costs included.

That's too rosy a view.

If it were to become so, then brokers would have little means to sell the stock. Even if the present option/dilution of earnings scenario were to persist into the next market, brokers would use increased revenue as a demand carrot, and the price would rise. It would devolve into a business as usual situation, nothing would have been fixed, we'd be set up for profitless gains all over again.

Chaz
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