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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.47+1.9%Nov 3 3:59 PM EST

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To: rkral who wrote (64483)9/11/2003 1:51:08 PM
From: Kirk ©  Read Replies (2) of 77397
 
Your example sums two events, stock exercise and stock buybacks. when you ran into the little problem that the stock increased in value, then you had to make up a third event, a dividend, to make a point.

Bottom line is I was right. Stock holders give up a fraction of their company, 2% for many tech companies, with the hope this gets the workers to do 12x6 days to grow the value of the remaining 98% of the shares enough to compensate for the dilution. The net effect on the company as an operating concern is a positive cash flow from printing and selling new shares of stock.

Your argument fell apart when you had to add two new events, one of which (a dividend) has never been paid by Cisco.

Sorry, nice try though. -grin-
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