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

To: RetiredNow who wrote (61326)	9/18/2002 11:53:36 PM
From: Tom D	Read Replies (2) \| Respond to of 77400

Off Topic re: expensing options but then back On Topic for the second paragraph. About a month ago when I produced the estimate that last quarter MSFTs profits would have been $0.99 billion instead of $1.45 billion if companies had to expense options, and that MSFT's share price might drop by about one-third, the replies I received said that nobody (except me and, I guess Lizzie, when she looks at undiluted PE in response to my emails) looks at undiluted PEs. Everybody else takes this into account so that there would be no drop in share price. On Topic Yet I find it hard to believe that if CSCO reported net income of $373 million, it would not affect their cap. Tom

To: RetiredNow who wrote (61326)	9/19/2002 2:49:00 AM
From: chaz	Read Replies (1) \| Respond to of 77400

Mindmeld... Total option allowance for these three years is $4.3 billion, Andy Fastow's favorite number btw! Do employees at any company deserve 80% of revenue as bonus compensation? Chaz

To: RetiredNow who wrote (61326)	9/19/2002 4:03:46 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 77400

This article is gradually making my opinion of Cisco and CSCO, move closer to my opinion of QCOM. In both cases, I see a company that is gaining ground in its core markets, that owns the best technology, and has a consistent track record of making the best products. But....... In both cases, I'm seeing a defective business plan, which results in the available cash flows diverted away from current shareholders. And that diversion seems to be a permanent part of the company's culture, not a temporary effect of the Bubble. In Qualcomm's case, all the cash generated by chips and licensing, disappears into their Strategic Investment Division. And managment hasn't learned anything from repeated disasters, for years, in their various ventures. Globalstar was only one of a series of money sinks. Most discouraging of all, management keeps making those mistakes, quarter after quarter, year after year. In Cisco's case, management seems firmly committed to managing the company for the benefit of employees, not stockholders. When employee stock options, properly expensed, make all your "profits" disappear, then something is seriously wrong (speaking strictly from the viewpoint of a non-employee stockholder). I believe in taking care of employees. But there has to be something left over for stockholders. In Cisco's case, over the long-term, averaging the good years with the bad years, there doesn't seem to be anything retained for common stockholders.