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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: WTSherman who wrote (34805)	5/8/2000 10:10:00 AM
From: JDN	Read Replies (1) \| Respond to of 77398

Dear WT: Your arguement is too simplistic. 1. I would say its actually EASIER for a larger company to make acquisitions than a smaller one. The stock (money) is more liquid and tradeable, the throughput of the product is much greater, the prestige factor to the acquiree is greater. etc 2. You are doing a simple mathmatical calculation here. What if, as CSCO matures, they take their staggering cash flow and begin repurchasing shares, what if they IPO subs and spin off the stock as dividends? Now, as to this dilution factor, you are taking the past and prorating it to the future. If their acquisitions are successful while they may have originally been dilutive, their increase in revenue and profits as a result soon become anti dilutive. JDN