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

To: Elroy who wrote (65986)	8/11/2004 2:21:59 PM
From: Kirk ©	Read Replies (2) \| Respond to of 77400

Cisco needs to reroute their cash flow from buying back shares to negate stock option dilution to paying a dividend or reducing total shares outstanding. PERIOD! Chambers needs to wake up! They also need to get with the program ala MSFT and eliminate or greatly reduce their options program. They don't have the growth to justify the dilution any more. I had Cisco as a RARE trade from $17 to $24. Rare in that I seldom go long a stock I don't really like the fundamentals for. If I look here: biz.yahoo.com I see they have less cash than a year ago.. so they boosted earnings by using cash to buy back shares from option dillution. Cash and cash equivalents, end of fiscal year: July 31, 04 = $3,722 July 26, 03 = $3,925 Perhaps the cash is going to growing inventory to sell where they might lose orders if they don't have inventory on hand... but it looks like shareholder equity actually went down over the past year.... Shareholder Equity as reported by Cisco: July 31, 04 = $25,826 July 26, 03 = $28,029 Amazing! Shareholder equity went down the past year and they call it a "recovery" and "doing well." I compare that to a company I am adding to in this decline that saw its shareholder equity nearly double over the same period (the past 12 months) while it saw its cash increase by over 5x. It is beating Cisco on some accounts and has a forward PE of 6 when you subtract cash on hand. Why would I want to buy Cisco?