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 : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (6856)	9/17/2000 6:18:46 PM
From: tom ablett	Respond to of 14638

If you read the IBD article it's probably overdone and may give us a major buying opportunity. Roth says they are sold out for the entire year 2000. When the telco's come out with their spending forcasts later this year, analysts will have a better idea and be able to predict earnings more accurately. Until then fear will prevail if think. Still not time to be a long term investor, for me at least. Tom A. PS --- Hard to believe we can get IBD online free, wonder how long this will last.

To: Sector Investor who wrote (6856)	9/17/2000 10:34:13 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 14638

Key Factors Leading To "Watered Stock" At Cisco Systems billparish.com 1) Excessive use of the pooling method to account for acquisitions, thereby hiding the true cost of acquisition activity. JDS Uniphase, a top Cisco competitor, does not use pooling. 2) Paying employee wages mostly in non-qualified stock options. This removes the cost of labor from the financial statements and overstates earnings because these wages for options exercised, unlike cash wages, are not included as a charge to earnings. What Ralph Nader clearly does not understand is that these non-qualified options are not meant to reward employees but are rather a scheme to generate cash through non-payment of federal income tax. Incentive stock options, ISO's, are the genuine way to reward employees because they are taxed at the capital gains rate when the stock is sold yet ISO's do not provide the company with a tax deduction. Cisco Systems and Microsoft led the conversion from incentive to non-qualified options because they wanted to generate cash from the tax deductions, thereby selling out their very own employees, and offloading their entire corporate tax burden. Employees at times pay a combined rate of 60 percent when they exercise non-qualified options, even if they do not sell the stock. Neither Microsoft nor Cisco Systems now pay any federal income tax. 3) Sales adjustments now represent a large component of gross revenues and investors should begin to ask questions. The first question should be, are gross revenues being manipulated by management? A second question might be whether leases are properly accounted for. 4) Cisco's auditors, Pricewaterhouse Coopers, are not independent and are helping disguise the scheme. This firm also audits Fidelity, Janus, AXA and Vanguard in addition to co-marketing Cisco's products through its consulting division. 5) A quiet, aggressive and highly successful public relations effort is lobbying hard to prevent reform. Microsoft could learn a lot from this approach used by Cisco Systems. A key focus is Phil Gramm of the Senate Banking Committee, which oversees the SEC, in an attempt to lobby Congress to overrule SEC mandated reforms..

To: Sector Investor who wrote (6856)	9/19/2000 12:16:02 AM
From: jack bittner	Respond to of 14638

my advisors track every regular hours trade of every stock on the nyse. they mark uptick trades as buys and downticks as sales. non-block trades are guys like you and me. block trades are the institutions. nt is a non-block 2 on a scale of 1(heaviest selling) to 5(heaviest buying). it's a block 3, pushing to 2. down 6% on 20 million shares, when the year's average is 10 million shares a day is institutional selling. the investors who are selling are everyone but you, me, Ken and Bosco. that they have nothing to fear about the telcoms does not mean that they are not afraid. maybe they are not afraid of nt's prospects, but about 105x earnings. maybe the "it's-a-great-company-and-worth-ANY-price" game is over. anyway, maybe it'll take a couple of year's, but we'll see 80 again.