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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.07

+0.2%

Dec 1 3:59 PM EST

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To: hueyone who wrote (64621)	9/15/2003 10:59:01 PM
From: Don Lloyd	Read Replies (3) of 77400

hueyone, Snip: Dell's problems are twofold. The first is that the company's employee stock option grants and option purchase plans have been so generous that most of the value created by its business gets redistributed from shareholders to employees. The second problem has been its policy of repurchasing shares at high prices to combat share dilution. These criticisms are completely correct. When a company publicly admits that it is buying back stock to combat dilution, it is committing gross fraud. While there can be legitimate reasons for buying back stock with shareholder funds, such as an excessively low stock price or possible dividend tax considerations, this is not one of them. It provides no actual benefit to shareholders and only serves to mask excessive dilution. Regards, Don

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