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

To: hueyone who wrote (62755)	1/24/2003 11:37:54 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

OK. I see where you were headed. Yes, I agree wholeheartedly. Free cash flows calculated without deducting stock options expense has the potential to be very misleading. However, I would also argue that in today's market stock options expense is immaterial, especially at a company like Cisco. Take a look at the tax benefit number. That will give you some indication of the size of the stock options expense. I guess if you strictly used Black Scholes, it might be significant, but of course, I'm not an advocate of a strict Black Scholes model for figuring out how much to expense, because I think that also skews the numbers in good and bad times.

To: hueyone who wrote (62755)	1/24/2003 12:16:07 PM
From: rkral	Respond to of 77400

Huey, re "You seem to have completely missed the point of the discussion" Gee! You are really good .. you could tell that from my two (actually one) questions. ;-) Well, maybe I did miss your point .. but I don't think so. re "spending time looking for a case where a company has purchased capex with stock options as you suggest .. " I didn't, and still don't, know of any company purchasing capital equipment with stock options. But since you were making that part of your point, I thought you knew of at least one, so I asked. But I didn't suggest you to spend time looking. I thought you knew of at least one .. off the top of your head. I now think you overreacted. :-) Regards, Ron