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

To: The Phoenix who wrote (45753)	1/2/2001 9:31:58 PM
From: GVTucker	Read Replies (1) \| Respond to of 77400

Phoenix, RE: If CSCO - rather than pushing earnings to the bottom line chooses to take a minority stake in a company these "earnings" never show up on the "actual earnings".... For this reason I think actual earnings understate the health of corporate earnings. Minority stakes in other companies shouldn't even be considered in the same context as operating earnings. They should be valued at book and marked to market at each reporting period. That is the most reliable method to value minority stakes. I was in a battle with the Intel thread a few months ago, with most on that thread taking issue with my desire to have earnings from minority stakes broken out and valued as a multiple of book rather than a multiple of earnings, because the earnings number in this case is so unreliable and not reflective of what is happening. Now it is rather apparent that this would have been a better approach. It was a better approach then with Intel, and would be a better approach now with your Cisco proposal. Of course, that would also result in a lower valuation for Cisco. So if you want your minority stake method used, fine. It has nothing to do with the health of corporate earnings or true operating earnings, as opposed to the operating earnings number that Cisco uses.