Cisco Systems, Inc. (CSCO) Message Board

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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.40

+0.4%

10:16 AM EST

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To: sepku who wrote (12737)	2/28/1998 12:17:00 AM
From: Gerald Walls	Read Replies (1) of 77400

Providing CSCO retains its dominance for the most part over the next several years, I believe the maximum benefits of the YEELDS (your best-case scenario) would likely be the rewards of this vehicle. Of course, it's probably more likely CSCO common stock performs well in excess of 20% annual returns on its own. Apart from the 5% dividend, I'm not sure I see any advantages over purchasing common stock...only limits on potential. You know, I bet you could come up with a synthetic security involving CSCO stock and options that would give you the exact same risk and payoff characteristics or better. You're still exposed to the downside risk while your upside potential is limited in exchange for a cash stream. Just like a covered call scenario.

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