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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.99+0.2%3:59 PM EST

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To: Stock Farmer who wrote (62761)1/24/2003 1:55:40 PM
From: RetiredNow  Read Replies (1) of 77400
 
All very factual and complete, John.

However, I must point out that enterprise value is determined from what wealth we expect to be created over it's future years. Thus the discounted free cash flows model. From that perspective, Cisco is still worth a healthy $9 per share for anyone willing to invest (and judging from the way the market is headed, we might get there again soon).

Anyway, the sooner options expense is accounted for in the income statement, the better off all the shareholders will be. Hopefully, with the elimination of dividend taxes and the pressure continuing to mount for stock options expense, we'll one day see companies with cleaner, easier to read financials, as well as a management that is more aligned with increasing shareholder wealth, instead of employee wealth.
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