Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JakeStraw who wrote (58444)	3/12/2002 3:33:49 PM
From: BWAC	Read Replies (3) \| Respond to of 77400

Jake, Whats going on here is CSCO is off balance sheeting some speculative R&D. As opposed to how its being portrayed/innuendoed as some off balance sheet financial hedging and hidden loans. For example. Take BigDrugCompany (DRUG). Watch how they operate. Buy 20% of private ResearchADream. Drop a little cash their way. Retain a little ownership. Tell them to get busy developing that wonder drug. And oh by the way, If you successfully develop something, we'll buy you. If not then oh well, we'll just write our investment in you off. Better to writeoff the $20 Million investment than assume the $100 Million in losses and debt Research-A-Dream accumulated over a period of years. And every once in a while Research-A-Dream comes public. And BigDrugCompany (DRUG) recoups its initial investment on the IPO. Followed by the subsequent liquidity cash crunch driven crash right before a real product is developed for commercial use. In steps DRUG to pick up the pieces and assume 100% ownership of the soon to be profitable Research-A-Dream. Which now has a viable product. CSCO took a page out of the Big Drug operations manual.