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


To: The Phoenix who wrote (45817)1/3/2001 10:36:36 AM
From: GVTucker  Read Replies (1) | Respond to of 77400
 
You're right, Gary, I did miss your point.

Now I have no idea what you're talking about.

but what CSCO has been doing is reducing "actual earnings" by taking money from earnings and plowing them into start-up's/investments. They don't have to do this... but they do.

Earnings are earnings, no matter what you do with them afterwards.

Plowing those earnings into start ups and investments only impacts the balance sheet, not the income statement. Until those investments are sold, acquired, or consolidated, they will have no income statement impact at all, unless Cisco is forced to write down the investments because they have significantly deteriorated, in which case the hit to earnings is real anyway.

What am I missing here?