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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.22

+0.1%

Nov 24 3:59 PM EST

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To: RetiredNow who wrote (61735)	10/8/2002 6:19:28 PM
From: Stock Farmer	Read Replies (1) of 77400

LOL... you got half the picture mindmeld. Sooner or later the light bulb will go on and you'll see the other half :) Yes, 2/3 of assets sitting on Cisco's books came from stock option exercise. Now, stock options represent HALF of the equity financing in which the company participated. This is something you and I went over in detail earlier. All things being equal and without going through the ugly details, we can extrapolate that total equity financing sould therefore represent roughly 4/3 of Cisco's assets. Since they only have 3/3 of their assets at the moment, that means about 1/3 went somewhere. Presumably it was spent legitimately and not stolen or embezzled, in other words, it was used to subsidize profits. Since profits were about 1/3 of assets, it appears on the surface that equity financing has totally subsidized profits. Of course, this is "chain-saw" math and inaccurate by a few billion here or there. The facts are all laid out well in the SEC filings in case anyone wants to go there. John

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