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Technology Stocks : Long Term Investors' Outpost -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (439)	8/20/2002 11:28:28 PM
From: TimbaBear	Respond to of 562

Insider ownership of cisco is 2%... Sounds like just a little bit doesn't it? Let's see, according to Yahoo, there are 7.32 Billion shares of CSCO outstanding....that means insiders own 150 Million or so? And compared to a few hundred that the average investor might own and be able to vote?....Insiders win hands down. ... Institutional ownership is 56%, with the top institution (as of this list, today) holding 3.5%, or more than the total of insiders. One, Institutional investors have a high turnover of shares owned, do you know if they always vote their shares(i.e if 4 mutual fund companies owned the same 1 million shares at different times during the year, would any of them have voted those shares)? Two, who gets the shares that aren't voted, are they defaulted to management to proxy? Three, how certain are you that the institutional investor's desired outcome in any given election is going to be aligned with the individual shareholder's? There are no 5% insider/owners. Therefore insiders are much less powerful than the owning institutions, I would say. Not if the insiders get to proxy all shares that aren't cast. There are lots of things about how companies run that I would like to change, its just that options are not one of them, I don't want to change the options, just how they are accounted for. and since the black scholes approach is not a black and white solution to the problem I can't see why it should be legislated I agree, I would like to see a remedy that is fair for all sides. Its my choice to stay away from the stock, why won't that work here? If this options abuse were an isolated case here and there, then your plan would be better, perhaps, than rattling the whole cage for a few violators. However, this is extremely widespread and it appears to be growing. The incidence does rise to the level of needing national attention. This country prides itself on transparency in corporate accounting. Like several posters here have indicated, a lot of this is written somewhere in the filings if one were to go look for it, so in that aspect it is transparent. But the Purloined letter was hidden in plain sight as well, that didn't make it any less of a stolen letter! Money is leaving the American Market and I believe it will continue to leave as long as the perception is that the game is not fair. We have resisted the notion of change for 2 years and it is only in the last few months that reforming the laws and accounting procedures and policies has been given some momentum, but the changes have not been effected, and I think the world is seeing the enthusiasm for meaningful change die with the recent rally. The name of this thread: "Long Term Investor's Outpost" means (or should mean) that everyone here should subscribe to the notion of full and honest accounting and disclosure, because that is the only path to being able to have the confidence to employ our money for the long term in any one enterprise.