Thought you might enjoy this....
Shareholder Benefits
What, one may ask, has Cisco's sizzling sales, aggressive acquisitions,
innovative research and the production of new and better devices for unique and
improved communication done for the stockholders of the Internet king?
Well, ponder the fact that when Cisco went public on Feb. 16, 1990, the price
was $18.00.
The high this year has been $120 and one analyst says that it may easily reach
$135. That in itself is impressive but the icing on the cake and the cherry as well
is that the stock has split seven times since 1990. Five times it split 2 for 1,
twice it split 3 for 2.
Had a person been fortunate enough to get in on the initial public offering and
bought one hundred shares for $1800 plus commission, that person would now
have 7200 shares. Now, here is a startling surprise for you. This is being written
on May 11, 1999, at 4:00 p.m., Mountain time. Two hours ago, Cisco announced
that the third quarter results showed that Cisco had net sales of $3.15 billion
compared to $2.18 billion for the same period last year, an increase of 44%.
What is more thrilling yet, Cisco announced a two for one stock split to take
place on June 21, 1999, to stockholders of record on May 24th.
Therefore, one hundred shares bought in Feb. of 1990 would have grown to
14,400 on June 21, 1999, if one had purchased them when issued. Is that
fantastic, or what? The May 24th issue of Fortune is certainly correct when it
says of John Chambers: "he runs a hugely profitable company." (p.107).
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