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

To: GVTucker who wrote (35429)	5/11/2000 9:27:00 AM
From: Monty Lenard	Respond to of 77397

GV, you are right but I was trying to speak generally not split hairs over a day. Sure if it was one day I would wait also. I was only trying to impress people the thought processes that take place vs what should take place. Monty

To: GVTucker who wrote (35429)	5/11/2000 9:28:00 AM
From: lawdog	Read Replies (2) \| Respond to of 77397

<<OTOH, using your example, the person who supposedly saved $8 in taxes really saved even less, because the taxes are not paid when the stock is sold. If CSCO was sold today, the taxes wouldn't be paid for another year, thus you could discount that $8 back a year. At a discount rate of 10%, now that savings goes back to only $7.20.>> GV, since we are being sticklers, you are not exactly correct. A large enough gain to warrant a LTCG savings would require estimates to be paid on the quarter (unless you like nasty penalties and interest). The taxes on shares sold today would be due June 15. The AMT can also reduce the benefit of the LTCG rates (I know you'll want to argue this point, but I assure that you that this is correct - think AMT exemption phaseout). WIth re: to share buybacks. Your distinction is right on the money, as usual. The shares go into leaky buckets. The funny business with stock certificates, or, "stock currency" can make one's stomach turn. If buybacks were really such a perfect earnings distribution vehicles there would be no dividends. Period. I would rather have the cash, personally. It's a lot harder to manipulate expectations when you are using real hard currency and not funny money.