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

To: Dave who wrote (66600)	11/26/2004 3:32:48 PM
From: Kirk ©	Read Replies (1) \| Respond to of 77397

"Cisco's book value per share declined since Cisco repurchased over $3 Billion worth of stock last quarter." So are saying they over paid since the actual value per share of what a shareholder owns went down? Also, if they repurchase shares, don't those just go to the treasury as an asset which would not effect book value as long as the stock price didn't change? Look at this balance sheet summary moneycentral.msn.com If they are making so much money, then why are the total assets going down between 7/2000 and 7/2004? Date Total Equity Shares BookValue 7/2000 $26.5B 7.1B $3.77 7/2004 $25.8B 6.7B $3.85 10/2004 $24.6B 6.6B $3.73 Yet over the period of 2000 to today, they have made a ton of money as shown here moneycentral.msn.com From what I can tell, it looks even worse if you subtract out "Intangibles" which went up about $0.4B. Since you can't eat or spend those, many subtract them from Book Value to get Tangible Book Value which removes another 5 or 6 cents. What I see with my amateur CPA analysis of Cisco is a company that is run to make insiders rich and ignorant owners happy because they see EPS growing along with "positive cash flow." I readily admit I could be wrong, but why would I want to buy this stock except for a trade if the value of what the company goes to insiders rather than the shareholders? That option money is gone forever. Double checking my math, Yahoo has P/B=5.15 at $19.23 which gives a book value of 3.73. Hot dog! That agrees with my balance sheet analysis.