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: Paul Reuben who wrote (41372)	10/23/2000 7:10:26 PM
From: The Phoenix	Read Replies (2) \| Respond to of 77397

LOL! I didn't have to read past the opening paragraph to discount that article. The problem is that we have a analysts looking at the value equation which is valid. But to suggest that investing in the PC market versus the communication/internet infrastructure market will yeild better gains is simply nuts. Of course AAPL is a better value!! Why do you think it is??? Maybe cuz that sector sucks! LOL!!! Paul - no pain no gain... Certainly seems like beat up CSCO year...

To: Paul Reuben who wrote (41372)	10/23/2000 7:42:54 PM
From: RetiredNow	Respond to of 77397

That is an excellent article. I wish it didn't have so much truth in it.

To: Paul Reuben who wrote (41372)	10/23/2000 7:43:45 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77397

That is an excellent article. I wish it didn't have so much truth in it. But his forecasts are very similar to my pessimistic forecasts. I tend to think we will get a double in 5 years time from here, but each to his own.

To: Paul Reuben who wrote (41372)	10/23/2000 8:30:14 PM
From: bambs	Respond to of 77397

Keep in mind that Cisco's margins have become increasingly inflated due to the enormous option grants the company makes to compensate employees, the cost of which doesn't appear on the income statement. If it were, according to estimates in Cisco's 10-K, net income last year would have been 41.9% lower than reported. Two years ago, net income would have been 26.5% lower; three years ago, 19.3% lower. The problem is rapidly getting worse. This reminds me of three questions Warren Buffett asked in his 1998 annual letter to shareholders: "If options aren't a form of compensation, what are they? If compensation isn't an expense, what is it? And, if expenses shouldn't go into the calculation of earnings, where in the world should they go?" I think this is makes a good point.