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

To: Amy J who wrote (66073)	8/26/2004 2:14:16 PM
From: Kirk ©	Read Replies (1) \| Respond to of 77400

What does compensation have to do with it? As an investor all I care about is if I am getting a good investment. Why would I want to buy a company that is using all of its earnings to counter the effect of option dilution and will face a further 26% dilution if the price goes up to cause all outstanding options to vest? I'd much rather buy GE that pays a 2.6% dividend and grows shareholder equity. Cisco might have a bright future, but with 26% option dilution down the road if price goes up.... It will take a ton of the companies earnings to not dilute he stock when they vest. Companies without that option overhang will be free to use the cash to reinvest in the business (grow shareholder equity) or pay me a dividend. Why is that so hard to see?