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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: rkral who wrote (62816)1/30/2003 12:20:40 PM
From: Stock Farmer  Read Replies (2) of 77400
 
ron, management is getting compensated for running a widget-making industry, for the benefit of shareholders.

There is a tool which shareholders use to determine the degree to which the widget making is making them money. And which tool is used by experts and amateurs alike for calibrating the priceometer which is attached to their wallets.

When the dial on this tool is at its preset factory setting, some of the cost of management compensation is not factored into the tool. Which throws off the precision by which the priceometer is calibrated. Which affects the functioning of the wallets of shareholders. In such a way that management's compensation is increased.

All master craftsmen know this, and they spend hours with very fine instruments disassembling the tool and adjusting the internal wheels and cogs and setting the dial on the tool to where it belongs.

But this is a laborious process. And tricky and fraught with error. One small slip of a tiny tweezer and the priceometer calibration is thrown terribly out of whack, in either direction. Master craftsmen would rather not do this. They do understand that the ability to make such adjustments is what makes them master craftsmen. Which gives them economic advantage over hordes of amateurs who would otherwise put them out of business.

But someone let slip a page out of the secret training guide to master craftsmen. And amateurs were suddenly able to properly calibrate the priceometer. And suddenly discovered how far out of line it had let their wallets stray.

And now they are angry at having been "deceived". And demanding that the factory ship tools that work when the dial is set at the factory setting.

John.
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