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

To: RetiredNow who wrote (66079)	8/26/2004 3:51:58 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77400

I think the options culture works as long as companies are growing in 30%+ mode like ebay and cisco in the 90s. At that time, you need super-incented employees to deal with the hypergrowth. But then, at some point, the hypergrowth stops and management has to switch gears and turn into a "mature" business model (with no options). The only company that I know of who has managed this transition is microsoft. But in reality we don't know the absolute outcome because without options, msft could become something like IBM in 93... a vulnerable giant getting his ankles bitten by upstarts like google (in fact that is my belief). Cisco management probably feel like it isn't worth the risk to do the msft/mature company thing, with JNPR out there and others. In a way this situation with options and mature stock prices assists in the creative destruction of tech companies which helps the whole industry.