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

To: Amy J who wrote (66071)	8/26/2004 2:04:13 PM
From: Kirk ©	Read Replies (1) \| Respond to of 77400

Kirk, your analysis appears to be missing one key data point: what's the company's total compensation amount compared to other companies. You are focused only on options, yet neglect their lower base pay, which has the net of invalidating your analysis. A valid analysis would include the total company compensation and a comparison. No, you miss the point. Do the math! Calculate how much of the earnings from the past years have been returned to shareholders in the form of higher stockholder equity or dividends. Where did the earnings go? What you are saying in effect is I am right and that shareholders are paying out our earnings as salary! Other companies that compete for my investment dollars don't hide this compensation expense. In fact, they deduct it from earnings so earnings are returned to me in the form of higher dividends or stockholder equity. Warren Buffett and others want to recognize this salary expense but I think they go about it the wrong way. I think they could clean it all up if companies were forced to show where their earnings went in an easy to follow method... they should be forced to simply state how much of earnings are used to pay insiders via option dilution pay dividends increase stockholder equity other...