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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.07-1.1%Dec 1 3:59 PM EST

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To: t2 who wrote (67002)2/8/2005 11:47:51 PM
From: Elroy  Read Replies (2) of 77400
 
Operating cash flow is huge, but cash balances keep declining because they are flushing it out the door to offset option dilution.

I would much rather have CSCO buy ZERO of its own stock, have the effect of option grants appear in the rising share count every quarter, and have the cash balance increase every quarter. Then it would be more transparent what is actually going on at CSCO. EPS growth would be much lower, and cash generation - and retention - would be amazing.

Basically, they are a cash cow, but giving the cash away to employees rather than retaining it for shareholders.
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