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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: Don Lloyd who wrote (63547)4/14/2003 2:22:30 PM
From: Lizzie Tudor  Read Replies (1) of 77400
 
Isn't this a pretty one-sided analysis? It's like saying that paying for production materials is never good for shareholders. Or that paying salaries is never good for shareholders. Are there NO actions that a company can take that are of net benefit to shareholders if they happen to result in any dilution?

You hit the nail on the head.

I know I have mentioned this before, but this point was really brought home to me with a discussion I was having on the oracle thread recently. When all was said and done, it was obvious that the "concerned shareholders" engaging me in the debate wanted Oracle to fire half the staff and pay out all the cash on hand in a dividend.

The bottom line is that some shareholders feel employees are overpaid, and (at least in oracle's case) also feel there are too many employees on the payroll. This is a determination for management, not shareholders. Shareholders should look at a company in its entirety and if the executive or employee compensation is not to their liking (taken in context with the performance of the company overall relative to the industry) they should move on with their money.

The thing that is most disturbing to me wrt this debate is that the stellar companies like cisco are being judged in the same bucket as computer associates. This is the downside to the individual "investor class".
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