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

To: Stock Farmer who wrote (47555)	1/30/2001 5:06:10 PM
From: Wyätt Gwyön	Respond to of 77400

Great post, John. This really puts it in perspective: "Common Stock and Additional Paid In Capital" is sale of shares (option exercise = sale to employees) plus tax benefit of stock option exercise, plus a bunch of other things like selling shares to purchase companies. This represents 55% of the business!

To: Stock Farmer who wrote (47555)	1/31/2001 7:17:12 AM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

Well, it's going to be interesting to see how that option exercise # changes this year, when most people probably aren't exercising anything because their options are close to worthless. That should change their operating cash flow figures dramaticly, according to the info in your post. If operating cash flow suffers, then their market value should go down with it. I'll keep an eye on it the next few quarters to see what happens, but I've never been worried about all the accounting arguments people have made (ie purchase vs pooling), because I have been confident in Cisco's ability to generate cash. If that fundamental has changed, then that will change my perspective quite a bit. We'll see though. BTW, did you check out Cisco's latest product announcement? Some are saying it's going to marginalize Juniper over time, because Juniper doesn't have the optical presence to go along with their high-end routers. This could be a big win for Cisco on the competitive front.