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: The Phoenix who wrote (41311)	10/23/2000 12:50:59 PM
From: bambs	Read Replies (2) \| Respond to of 77400

Are you arguing that if CSCO just prints shares a billion shares and sells them to employees at a cost of say $25, it's a good thing? Why don't they just print 10 billion more shares and give them to employees for 1 cent. Then they will insure that they will never have to pay tax ever. Bambs

To: The Phoenix who wrote (41311)	10/23/2000 12:51:54 PM
From: GVTucker	Respond to of 77400

Gary, RE: You're using cost as the cost basis for each option? Or the price at exercise? The expense to the company upon exercise is what??? The difference between cost basis and exercise price? If so, explain to me how this is a real cost. I see the dilutive nature and the opportunity costs but I don't see a real cost issue. I see a tax gain...but not a real cost. 'Cost' here is price at exercise, and it isn't a real cost, as you state. I thought that I stated earlier that I disagreed with the way that Parish looks at things. I just was explaining where his logic was coming from. As I have repeatedly stated, I believe that both Parish's analysis and his conclusions are in error. I still think that there are items in Cisco's accounting that need examination and do indeed force me to adjust their earnings numbers down, but the employee option thing isn't one of them.