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

To: GVTucker who wrote (61764)	10/9/2002 9:19:01 AM
From: Elroy	Respond to of 77400

I seriously doubt that CSCO will be shrinking the float through share buybacks Why not? They've got $20 billion cash and a $60 billion market cap, and are EPS and cash flow positive. Spending $5-$10 billion on buying shares at $10 each or less sound pretty smart to me, and I'm not as smart as CSCO management. I bet they increase the share repurchase program on or before the date to announce October results.

To: GVTucker who wrote (61764)	10/9/2002 9:59:22 AM
From: Dennis Doubleday	Respond to of 77400

> As of the fiscal year end 2002, there were 7.303 billion shares outstanding. Total diluted shares in the EPS calculation were 7.447 billion. That implies that there are 144 million options out there right now that are dilutive. At the current market price, CSCO needs to spend about $1.2 billion if they want to just keep things constant. --------------------------- Unless the strikes on those options are all near zero, your math is off. More likely they are closer on average to the current price than to zero. And don't forget the tax advantage Cisco will reap on their share of the difference.

To: GVTucker who wrote (61764)	10/9/2002 10:42:43 AM
From: rkral	Respond to of 77400

GVTucker, As of the fiscal year end 2002, there were 7.303 billion shares outstanding. Total diluted shares in the EPS calculation were 7.447 billion. That implies that there are 144 million options out there right now that are dilutive. The reported number of shares used to calculate "diluted EPS" might be an understatement relative to what you are expecting. The monies received due to 1) the exercise price and 2) the tax benefit .. are presumed to first purchase some of the shares. These "purchased" shares are not reported IMHO. IOTW more than 144 million shares were presumed to have been exercised when CSCO calculated the "diluted EPS" for FY2002. Message 17633215 Ron