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


To: Wyätt Gwyön who wrote (52003)4/22/2001 1:41:12 PM
From: RetiredNow  Read Replies (1) | Respond to of 77397
 
I agree with you completely about what Cisco will do. They will more than likely use inventory that was written off and then they will get a margin boost. It's perfectly legal and is allowed for under GAAP. I also agree with you that if we are looking for "truth" and appropriate accounting, we would wish they wouldn't play these games. But the bottom line is they are doing it this way and the bottom line is that it will benefit their margins and income down the road. All you have to do is realize it and you can profit as the stock moves up.