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

To: RetiredNow who wrote (58536)	3/17/2002 9:53:33 AM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

You know, I was thinking that we aren't really on the cusp of something so dramatic as the catclysm predicted in Munger's fable. On the contrary, I think we'll just see some fundamental changes take place. McCain's bill may do it, or maybe the SEC will push FASB to make the changes to account for stock options exercises as compensation expense in the income statement. Either way, we might see it happen in the next year or so. If it does, then companies like Cisco will stop issuing so many options. They may just ratchet it back to the top 10% employees, or maybe even further to just the executives. Then employees will realize the game is over and start leaving as they seek employment at companies that pay market rate salaries. Then Cisco will be forced to pay salaries commensurate with the market. All of these changes will make it easier for us shareholders to see how much money they really are making. I'm hoping that they will start to use that cash on the books for better purposes too, like buying back stock and paying dividends, especially now that it is clear a return to 30% plus growth is rapidly becoming a pipe dream. Cisco is a mature company. I wonder when they will start to act like a mature company and convert their cash flows power into a lock for shareholders, rather than continuing with the current dilution.