To: Stock Farmer who wrote (56738 ) 1/16/2002 5:07:50 PM From: RetiredNow Read Replies (1) | Respond to OK. Assuming your facts below are correct, we won't see Cisco be able to duplicate this action again in the future. Remember part of the arsenal through which they've been able to perpetrate this magical cash magnetism is the use of pooling accounting. That's gone, which means we'll see the direct affect of their acquisitions on both the balance sheet and the income statement. So one bullet gone from the barrel. The other part of their arsenal was a small o/s share number, which they split every year duping investors into thinking they had more of the pie. Remember the phenomenon of a pop in the stock price when splits were announced? Well, that's the second bullet gone from the barrel. Third, the company relied on an ever increasing stock price and off-income statement payroll financing through the use of stock options to cash in again. That bullet, which was a doozy, is now gone as well since the stock price isn't going anywhere and employees no longer think stock options are a no brainer.
