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

To: FESHBACH_DISCIPLE who wrote (47900)	2/5/2001 10:01:38 AM
From: The Phoenix	Read Replies (2) \| Respond to of 77399

Fesh, We've been through this before and I'm not interested in playground games with you. You were proven wrong regarding your formula. It's quite funny actually - every bear that had something negative to say about Cisco for some specific reason is claiming that they were right because the share price has fallen. The trouble is each bear has had a different reason yet they all claim victory. The fact of the matter is the economy has indeed slowed and Cisco's valuation was too high - it got ahead of itself. It's that simple. Your phantom inventory impacts are not supported by facts. Like I said, we've already had this discussion so take it somewhere else. I don't want you to get me booted off SI again for saying "bonehead". Sheesh. This conversation is over.. don't post me. OG

To: FESHBACH_DISCIPLE who wrote (47900)	2/5/2001 1:13:55 PM
From: Tulvio Durand	Read Replies (1) \| Respond to of 77399

... Now if inventory grows 15% instead of 58% There's flaw in what is presented. If ending inventory is reduced by 540 that means more goods were sold, yet sales 6,519 does not reflect additional revenue from the additional sales. What is assumed is that those goods were given away free of charge. The 540 inventory reduction would have produced an additional 540*1.635=882.9 in sales assuming the same profit margin as in previous sales. Thus, the second case cited becomes, Sales = 6519+882.9 = 7401.9 Cost of goods available 4334 Ending inventory 1416 Cost of goods sold 2918 Gross profit = 7401.9-2918 = 4483.9 Gross profit % = 4483.9/7401.9 = 60.57% ----- ie., gross profit margin remains same as in original case. Tulvio