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


To: bambs who wrote (47787)2/2/2001 11:45:43 AM
From: The Phoenix  Read Replies (2) | Respond to of 77400
 
bambs,

I have to admit - you've lost me now.

If CSCO sells calls they are betting the stock goes down. When investors see this they will sell their common or go short taking the stock further down. This activity has nothing to do with dilution this is perception. Of course the end game here is to buy them back at a lower price...... if Cisco believes the stock will recover... which we assume at some point Cisco believes the stock will recover.

If CSCO gives employee's the right to buy stock at a particular strike price there MAY be dilution but only if the stock rises from the strike price.... otherwise the option expires worthless and the outstanding shares does not change.

Perhaps you can explain your thinking a bit further...

OG



To: bambs who wrote (47787)2/2/2001 11:57:53 AM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 77400
 
bambs, you are trying to talk to a brick wall. The level of denial of reality remains high. "It's OK to give [sell] calls to employees, but it's not OK to sell them to the public." Uh-huh. So it all depends on how you're dealing with.