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

To: Tom D who wrote (61328)9/19/2002 12:13:55 AM
From: Lizzie Tudor  Respond to of 77400
 
except me and, I guess Lizzie, when she looks at undiluted PE in response to my emails)

Oh come now, you know it would take hours to reconstruct the past PE ratios based on whatever the accounting standard du jour is.. that really wasn't my point. The sites like quicken are reporting on the facts as they were reported, then. And isn't that the most relevant for historical trends?

If cisco traded at a PE of say 200 in 1994 based on GAAP and options expensing does that mean that "regressing to the mean" now means a PE of 200 is relevant vs. 19 as it was reported at the time? I would say no, but certainly open for discussion on the issue.

Personally I think this options issue is dead in the water anyway but prior gaap numbers are certainly relevant.
Lizzie



To: Tom D who wrote (61328)9/19/2002 7:59:03 AM
From: RetiredNow  Respond to of 77400
 
Oh, most certainly it would affect there cap. That's why they won't expense them. There is some legitimacy to their arguments that Black Sholes isn't a good way to measure the cost, but bottom line, they fear getting their stock price chopped in half should they expense them. A good solution is to cut their use of stock options down and increase cash compensation. They need to do something with that cash. Right now they have a huge agency problem.


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