Funny how you mix a bunch of unrelated issues up in that big stewpot of yours, like chainsaw Al, Bill Clinton, Cendant, SEC rules, stock options, and somehow swallowing this gemisch is supposed to have some special meaning to CSCO investors.
First, the problem posed by "in-process R&D" write-offs is serious, but it has nothing to do with cash flow. This is an accounting issue that I think is being dealt with by the SEC, and we should all applaud changes which make it easier to understand how accounting is reflective of performance. Accounting rules under pooling of interests need to be tightened.
Second, I agree with you that paying salaries in the form of stock options stinks, and companies do this to avoid explicit accounting for the true cost os wages and salaries.
Great, we agree on those two issues, but the rest of what you say is pure hallucination.
Chainsaw Al and CSCO?? c'mon. Dunlap ran around firing everyone and closing down operations. Do you see that at CSCO?
Cendant?? c'mon guy! They were recognizing non-existent revenues, and they were capitalizing advertising expenses that had nothing to do with merger issues. Nothing at all like the R&D write-offs.
Clinton? C'mon again. The whole thing was orchestrated by a bunch of right-wing loonies who were looking for any excuse to nail the guy. Now that it has blown up in their reactionary faces with "the Big Creep" garnering the highest approval ratings of any president in history, they are trying to take the moral high ground by telling us that it isn't about sex, that Larry Flynt is working for the White House, and anyway Hyde's dalliance at age 44 was just a youthful indiscretion.
The one thing missing from your post was proof that Vince Foster's death was tied into Cisco.
So, if you want to discuss accounting problems in the technology sector, I am more than willing. If you want to discuss Cendant, why don't you go to that thread.
TTFN,
CTC |
