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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.11+0.3%Oct 31 3:59 PM EST
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To: RetiredNow who wrote (24381)4/13/1999 7:54:00 PM
From: Adam Nash  Read Replies (1) of 77397
 
Tornado aside, the price Cisco paid has everything to do with how much they think they can do with their product line.

Maybe riding Cisco's shoulders, they will be able to deliver much, much higher sales volumes (and earnings).

Also, it's wrong to think of it as paying $2 Billion - they paid in stock dilution, whose effects are based on Cisco's current valuation which is quite high.

(And rightfully so...)
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