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

To: Victor Lazlo who wrote (62709)	1/17/2003 11:26:50 AM
From: hueyone	Read Replies (2) \| Respond to of 77400

True to form, slate is wrong again. Yes, the headline on that "Options Handuff" article suggesting that MSFT will not pay a dividend is wrong, but I linked that article mainly because it appears to support some points I have been making on the Oracle thread the last couple of weeks---that billions of dollars of earnings, free cash flow, retained earnings and total shareholders equity in tech companies that heavily use stock options is disappearing into share buybacks that do little more than counteract share dilution. For that reason, it is my opinion that not only do earnings need to be reduced on the income statement to reflect stock option expense, but also free cash flow needs to be reduced by a similar amount if free cash flow is to be considered a useful measure of the economic performance of these tech companies who heavily use stock options. Regards, Huey