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

To: Stock Farmer who wrote (61732)	10/8/2002 5:55:03 PM
From: Ed Forrest	Read Replies (1) \| Respond to of 77400

Looks like Halloween came a bit early for Cisco this year. :)

To: Stock Farmer who wrote (61732)	10/8/2002 5:59:02 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

LOL. John are you at it again, pestering other thread lurkers with your phantom Cisco profits line? Elroy, save yourself the trouble and look at past conversations between John and I. The short answer is that rougly 2/3 of the cash sitting on Cisco's books came cash inflows from stock options exercise. Put another way, they used employees as an expensive way to generate some equity financing. Or put yet another way, they directly transferred wealth from shareholders to employees and to company coffers. So the $20 billion is a nice figure, but don't get fooled into thinking Cisco is extraordinarily profitable, because it turns out that they are not increasing economic value faster than they dilute the company.