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

To: The Phoenix who wrote (41316)	10/23/2000 12:52:46 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 77400

That goes back to why I challenged his numbers a few weeks ago. The employee stock options are not created out of thin air. If the company does not own the shares, they have to acquire them on the open market, if they know that they have to acquire them on the open market, they are going to plan for it and mitigate the costs, and perhaps eliminate them completely. The fact that he didn't have the number of outstanding shares figured out, showed that he was missing a fundamental piece of information. And all of these reputable publications are duplicating his mistake....I love it!!!!

To: The Phoenix who wrote (41316)	10/23/2000 1:00:27 PM
From: bambs	Read Replies (1) \| Respond to of 77400

Let's assume that they don't buy the share on the open market. No real expense. The just print a billion shares over the next few years and sell them to employee's at a average cost of $30. What does that do to the stock? Will there be a noticable effect? The fact of the matter is that if they never sell then no. But we know that people will sell. In the long run shareholders can only take out of a stock gains in direct relationship to the companies earnings. When a company gives out stock options that amount to 40 billion dollars in gains for employees you have to think that they will want to get their hands on some of that 40 billion over the years. They will be able to sell and take profits all the way down to there cost basis. You can bet if they think that the stock has seen it's better days they will begin to sell. It will happen. The stock has seen it's better days. Just look at the effect of stocks going through lockup peroids. High flying stocks of the last few years get killed during the lockup peroid. close to a billion shares is a lot for the market to absorb over the coming year. When you buy these high fly tech stocks you are gambling that insiders won't sell before you. You are betting that the public will continue to happily work and buy mutual funds and index funds and the market will keep going up. That's the bet that you take. You aren't playing value you here. It's that simple.