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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.030.0%Dec 24 12:59 PM EST

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To: RetiredNow who wrote (62806)1/29/2003 3:55:55 PM
From: hueyone  Read Replies (1) of 77400
 
The insiders at Cisco created tremendous value. It just so happens that they walked home with most of it.

Well then, let me rephrase my statement to say something closer in line with your statement: "The wealth created and retained from internal operations for shareholders has been pitiful in many companies because the insiders have managed to walk off with most of it in exchange for operating the companies".

Like I said, the minute they start reversing dilution and paying out dividends, this stocks will take off again.

Unwinding from the "free options culture" is easier talked about then done imo. In spite of the all negative policy that excessive options programs have received over the last couple of years, all the data I've read suggests that options overhangs are still increasing rather than decreasing. Executives of these companies are still operating in the fairyland of entitlement, where compensation has nothing to do with the internal performance of the company, nor the wealth left in retained earnings after all the expenses, including stock option expense, have been paid. If the stock price falls, just increase the number of your options. How many years do you think it will take to reverse the thinking of companies towards one of providing real value to shareholders through shareholder's claim on equity? How many years do you think it will take to work through the options overhang? I don't know the answer, but it wouldn't surprise me if it takes awhile.

OPTIONS FRENZY CREATES LARGEST OVERHANG YET
By Paul Rogers
Message 18488887

Regards, Huey
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