Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: lawdog who wrote (35342)	5/10/2000 4:58:00 PM
From: Tom Chwojko-Frank	Read Replies (3) \| Respond to of 77400

Stock buy backs are smoke screens anyway. They rarely have any real economic substance. So essentially granting shareholders shares does not have a real effect? Stock buybacks are essentially dividends without the tax hit. The downside is that a buyback or dividend means you don't have anything better to do with the cash, like grow the company. The other possibility is preventing dilution from stock option exercises. I would hardly call these smoke screens. They have a fundamental impact on the stock's valuation. Whether that impact is good or bad always depends on the situation, of course. But your statement has got to be one of the worst posts I've ever seen on SI. Maybe you meant stock splits? Tom

To: lawdog who wrote (35342)	5/10/2000 5:30:00 PM
From: GVTucker	Read Replies (2) \| Respond to of 77400

lawdog, RE: Stock buy backs are smoke screens anyway. They rarely have any real economic substance That is an ignorant statement. Study after study shows that stock buybacks do indeed provide value to shareholders. Cash dividends have a greater effect, true. But the only reason for this greater effect is that historically cash dividends are more dependable and more regular than share buybacks. The one great advantage of share buybacks, however, is that they are not taxed, unlike cash dividends. If a company can establish a regular, long term trend of buying back shares, as a company like GE has done, I would argue that this is better for shareholders than cash dividends.

To: lawdog who wrote (35342)	5/10/2000 6:27:00 PM
From: SyncMan	Read Replies (1) \| Respond to of 77400

Law, You NDX puts look very smart in this market. If you really picked Cisco a sell at 70 (and not at 30, 40, 50, 60 and 70), then that was a very good call. (80 would have been better, but nobody is perfect). Becareful, though. I'm sure you know that things turn on a dime in these times. Of course, as long as the Fed's on your side you'll probably be o.k. I would like your opinions on where fmv of Cisco should be considered at this time. Perhaps a PE of 100, or a PEG of 2.2 wouldn't be out of the question? With revenues growing at 50%, shouldn't the stock sort of mirror that going into the future if we can reach a reasonable valuation in the short term?