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 (38092)	7/6/2000 10:41:57 AM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

Sounds like sour grapes to me. Perhaps you should read a Econoics 101 book someday. Take a look at "supply and demand economics". You're turning into a bonehead lawdog. OG

To: lawdog who wrote (38092)	7/6/2000 11:31:41 AM
From: GVTucker	Read Replies (1) \| Respond to of 77400

lawdog, RE: Without manipulation of the stock market and a gullible investing public csco would be a $20 stock. Could you provide just one shred of evidence that there is manipulation in the price of CSCO? Just because a stock may be overvalued doesn't mean that manipulation got it there. And for a large cap stock, the odds are about zero that anybody has the power to manipulate its price. The tax code allows deductions for this "expense" but GAAP does not force them to report it as comp. expense. The techs, as Zooty will gladly tell you, are out in force lobbying with anyone who will listen to prevent pooling from disappearing. The U.S. is the ONLY industrialize nation that still allows this chicanery to continue. Pooling is helping to create the problem that is waiting to burst through the dam. Blaming US GAAP is also not the way to go. Yes, pooling is allowed, but this does not change the cash flows and does not change the economics. The nice thing about US GAAP is that disclosure is much more onerous than any other country out there. For example, German GAAP does not allow pooling, but this does not matter because a company can write off just about anything they want at theri discretion. This would allow a de facto pooling without any of the concomitant disclosure that helps US investors make a decision. Cisco investors are fully aware of the accounting impact of pooling of interest accounting. The market has decided that this is an efficient way for Cisco to fund its R&D effort. Just because you and I disagree does not mean that anybody is being deceived. Quite the contrary, if you believe this, you are probably underestimating your competitors.