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

To: PMS Witch who wrote (49751)	3/10/2001 10:49:58 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77397

In accounting terms, it's called the big bath. It's time to bring all the shit out of the closet and throw it away. Now's a good time to do it, because hell, things are as bad as they can get, so what's a little more bad news. Alot of companies are going to start taking charges for layoffs, restructuring, marking investments DOWN to market, writing off excess or overvalued inventory, etc. Bottom line is that it's a smart thing to do. It clears the way for future upturns, because it cleans up the balance sheet and unencumbers future earnings.

To: PMS Witch who wrote (49751)	3/10/2001 12:26:15 PM
From: pass pass	Read Replies (2) \| Respond to of 77397

I think the total layoff is 8000 people, it'll cost about $400M, or about $50k each person. Still high, but I think CSCO may be playing some accounting magic to write off some bad loans to bankrupt CLECs and dot-bombs. Just my guess.

To: PMS Witch who wrote (49751)	3/10/2001 2:57:25 PM
From: Ed Forrest	Respond to of 77397

If it costs $300 million to sack 3,000 people, that's $100,000 per person. Does this seem a little steep? PW At face value it would.Of course there is no way of knowing at this point if the charge is for that purpose. Pure speculation on my part. Back to the layoffs,one has to wonder of the thousands to be sacked what percentage of senior staff is affected(therein lies the big bucks). 100K per person when taken in the context of 2 bedroom homes at one point selling in Silicon Valley for 1 million would not be too much of a stretch. Just the other day I viewed a link that pointed to a modest 3 br 2 bath,1 car detached garage located in the suburbs of Clara County,I believe,for 549,000.The poster called it his "dream home" Perception vs reality. Cheers Ed