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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.26+1.2%3:59 PM EST

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To: Lizzie Tudor who wrote (65669)7/1/2004 10:02:55 PM
From: Paul V.  Read Replies (2) of 77400
 
Lizzie,>Tell me when you think Cisco stock will hit $40. I don't think its possible thanks to globalization. <

If my general understanding is correct then the major cost (salary, fringes, etc.)of producing a service or product is 65-70 +/-%. If a corporation can mantain its current price then gross and net profit margin will increase to the benefit of the investor. Therefore, it is to the benefit of the corporation to keep its payroll and benefits as low as possible without reducing the quality of the product. Greenspan would call this increased productivity. Increased productivity increases the investors profit all things being equal. Therefore globilization is great for the invistor class. Not so for the US worker.

Paul
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