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

To: BWAC who wrote (61446)	9/26/2002 3:57:50 PM
From: kvkkc1	Respond to of 77400

If they miss their earnings this quarter, it could easily happen the first or second week of November, depending when they announce their earnings. Look at EDS on a warning. There's no mercy nowadays. Chambers doesn't instill confidence in anyone like he used to. The way stocks are trading nowadays, 1x sales may be fair.

To: BWAC who wrote (61446)	9/26/2002 4:23:44 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Good point. But what we are concerned with is Free Cash Flows. So it depends on how they accumulate their cash. If it comes from core operating earnings, then great, it will value adding. However, if it comes from stock options exercises, then that's not value adding, rather it's a transfer of wealth from shareholders to Cisco and the employees. Also, remember discounted cash flows account for everything in the future. So all it tells you is what the company's value is calculated to be today based on future cash flows discounted back. So if Cisco accumulates $4 of cash per share but racks up a bunch of debt, sells a bunch of shares, or gives out a bunch of options which get exercised to get that $4 per share in cash, then that is not value adding. Keep that in mind.