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

To: Lizzie Tudor who wrote (65653)	6/29/2004 10:07:19 PM
From: Kirk ©	Read Replies (1) \| Respond to of 77400

I work in a company where the sr management is really bothered by the fact their stock doesn't go up. They need to look at their own efforts towards the industry and the effect it is having on the stock market. No, they need to concern themselves with providing value for the dollar they are paid. The first step towards this would be to CANCEL their own stock options. Why would I want to buy an established company in the SOX when 2% a year is taken from shareholders and given to insiders? Sheet... annuities from the insurance companies scam less than this. It is clear to me that offshoring is to make the stock go up in the short (<5 yrs) term so they can cash in their stock options and leave. Longer term, the offshoring will drain valuable IP, but they will be long gone.... so they don't give a rip. Convince me otherwise and you might have a handle on how to convince the market to buy their stocks again. Kirk PS... I'm pretty much in the market but my big, newer bets are mostly on smaller companies. My biggest is on a company where the CEO and his wife own the majority of the stock... not stock options. They take a reasonably small salary and options dilution hurts them more than anyone else so I KNOW they don't give them away without expecting some value for it.

To: Lizzie Tudor who wrote (65653)	6/29/2004 10:09:12 PM
From: RetiredNow	Respond to of 77400

Here's history for you. The leaders of past growth industry bubbles usually don't recover for a VERY long time after a bubble busts. Also, when structural changes occur in an economy, the companies that experience this change usually stay in a funk for a long time. So it is to be expected. Actually though, I have been very impressed with tech companies ability to rebound from the bust so quickly. Look at Cisco's performance. They are running like a well-oiled machine after a huge miscalculation at the peak of the bubble. So the norm is for past leaders not to emerge for a long time, but every now and then a unique company breaks out of the norm and can rebound much more quickly. Cisco has great potential to do this given that they dominate their industry, networking still has plenty of growth legs left, and Cisco is lean and mean. So you should be happy that SV companies outsource to get the rebound going again. Otherwise, it would have been twice as long before the stock market rebounded again.