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

To: hueyone who wrote (62717)	1/17/2003 3:17:13 PM
From: hueyone	Respond to of 77400

Late edit to my definition of free cash flow: Imo, Free Cash Flow was originally developed as a measure of cash flow that is theoretically available to owners from recurring business operations after reinvestment in the business (capex). Again, if much of this wonderful, reported free cash flow later has to be used up in repurchasing shares in an effort just to keep the long term shareholders' percentage ownership of the company even, or, this wonderful free cash flow is subsequently severely diluted by stock options yet to be exercised, it is very difficult not to argue that reported free cash flow numbers for many tech companies are typically grossly inflated by failure to include stock option expense, and that these inflated, reported free cash flow numbers lack very little relevance to the operational performance of these companies in question. Regards, Huey