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

To: Doug Fowler who wrote (51597)	4/17/2001 8:54:14 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

actually, I think you did a good job to short since $63, but you should probably take some of your profit off the table, though. Right or wrong, the bad news is finally out and the stock will probably have hit a bottom by today.

To: Doug Fowler who wrote (51597)	4/18/2001 9:36:11 AM
From: i-node	Respond to of 77400

I absolutely do not understand this. Won't this inventory be eventually sold? They are required to report inventory at the lower of its cost or its market value (net realizable value). Obviously, they felt the net realizable value of the inventory had declined substantially -- which makes a lot of sense. If they don't sell it for several months beyond when was previously anticipated, it is reasonable to assume they'll get FAR LESS for it than expected (this IS technology, you know). You can argue about what the figure should have been, but the writedown is totally consistent with the basic principles of accounting and appears to be a proper charge. If they didn't take this charge now, you'd be complaining two or three quarters down the road that they had intentionally overstated inventory now. Basic accounting principles require conservative treatment, which is what you've seen. It was the right move.