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

To: bambs who wrote (39418)	8/12/2000 8:56:08 PM
From: The Phoenix	Respond to of 77400

Bambs, Well first I seriously doubt that the FASB would change GAAP to be retroactive especially given that shares have already been distributed and one time write downs executed. What a change in pooling could do is slow down Cisco (and other company's) ability to do acquisitions. Either way this will have little effect on forward looking earnings - it may have an impact on acquisitons. That all said costs of acquisitions I believe are looked at more like an investment cost rather than a simple cost of doing business. So while it is true that since most companies acquired these days are "start-ups" by definition the costs will be front end loaded. That is to say, as these companies come on line (note Cerent at $1B run rate now) and begin contributing the net will be a benefit to Cisco. Again, this only serves to hightlight the problem with including acquistion costs into earnings numbers. I still haven't heard from you as to why you believe including lumpy non-recurring costs into quarterly earnings makes sense. How can anyone hope to make sense of operations and operating growth if they are masked behind investment costs and investment gains? I know the investment community sees this very clearly. It seems to me that you're not all that interested in looking at Cisco's operations but only at knocking they way they do business. BTW: You have yet to fill me in on your work history. You can PM me if you like. In what departments did you work when you were at Microsoft and at Cisco. Finally, number of outstanding shares mean little... so I'm not sure what your point is with that... again I suppose you're still searching for that elusive kink in the armour. OG