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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.59+0.3%Jan 23 9:30 AM EST

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To: Stock Farmer who wrote (63034)2/10/2003 12:25:20 PM
From: RetiredNow  Read Replies (2) of 77400
 
Well, I haven't checked the latest financials to get the average exercise price, but I think it's fairly high for employees that joined the company in the last 3 years. That means that it's going to take them a long time before they are worth anything decent. Remember, most employees don't stay at a company much more than 4 years. So thinking that those employees who are there today will still be there 9 years from now is not a good bet.

As far as what could happen in the very near future, again I would bet my two front teeth that Cisco curtails their options program if they had to start expensing them. That not only applies to Cisco, but also to Microsoft and other tech companies.

Anyway, John, I may be a little on the optimistic side about Cisco, but I continue to think you're a little on the pessimistic side. Take away the one thing they are doing wrong (issuing too many options) and you'd have arguably one of the best run franchises in the U.S. That's worthy of an investment, especially at today's prices.
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