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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 72.99

-2.0%

12:12 PM EST

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To: Chuzzlewit who wrote (21022)	1/22/1999 2:15:00 PM
From: Cynic 2005	Read Replies (1) of 77397

<<The effect of this is to change the write-off from a one time, non-recurring charge to an asset that is placed on the books and amortized over the expected life of the project. But for tax purposes there is no change, so from the point of view of cash flow there is no change.>> If the stock trades only on cash-flow basis, a la cable company, you may be right. But this pig was fed with "better than expected" earnings which were obviously (in my opinion, of course) padded. When one takes more write-off than allowed, it is easier to pad future earnings. Which is exactly what many companies have been doing. If these "one time charges" are non-reccuring, how come they occur every quarter. (if say, they have acquisition each quarter, Duh!) Good luck!

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