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

To: RetiredNow who wrote (58454)	3/12/2002 5:02:44 PM
From: Stock Farmer	Respond to of 77400

There R&D expenses, which represent the entire possible loss from these transactions is reported as R&D expenses. So the investors should be reassured that there is no funny business going on here. Is that to say that if the expenses weren't the entire possible loss there would be funny business? I suggest you check your facts, 'cause what's being charged to expenses is not the full cost of the R&D, nor the cost of the investment. So you do have expense activity being subsidized by the balance sheet. It's a question of whether or not the increase in cost is worth the risks being avoided. It's a shrewd way to manage the bottom line, I agree. But is it a shrewd way to conserve shareholder capital? Jury's out on that. Take a coin toss. If it lands heads, I give you the coin. If it lands tails I keep the coin. Spice up the action. If it lands heads twice after two tosses, you get two coins. Otherwise, I keep the coin. Which is the more shrewd deal? I suggest that depends on whose coin it was to begin with: yours or mine or someone elses :) John