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

To: hueyone who wrote (60746)	8/6/2002 10:41:06 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77397

No surprise there. I expect your opinion is the predominate one in Silicon Valley. I hope you aren't assuming that those in SV that are against that black sholes method are in it for personal gain. The number of individuals with large option grants is much smaller than the number of investors in tech public companies in SV. Here are some notes from the call, an analyst asked about options expensing. JC mentioned how the black sholes model had an expense of over 3billion last year and 141mm this year for the same grants. Since these can't be exercised is this accurate? I want to see operating earnings not some made up expenses on the P/L but thats just me. Message 17844911

To: hueyone who wrote (60746)	8/7/2002 7:55:42 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77397

hueyone, you know very well that the same people that want Cisco to use Black Sholes today will be the ones who think it is unfair to book an earnings boost, when Cisco has to adjust from a $3 billion expense to a $150 million expense, as they would have had to have done from 2001 to 2002. That's what bothers me about it. The critics want the companies to be conservative to the point of obsurdity. So in Cisco's case, they would have shown a $4 billion loss in 2001, and then shown a $4 billion income in 2002, instead of a $1 billion loss in 2001 and a $1 billion income in 2002. Is that what everyone prefers? I say forget about Black Sholes. A better method is the way Coke is doing it. Quarterly re-evaluations will still add volatility to the numbers, but it's more accurate than Black Sholes.