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

To: Dave who wrote (66602)	11/26/2004 3:53:45 PM
From: Kirk ©	Read Replies (1) \| Respond to of 77397

I see you answered me as I was still writing my reply. Did you see how I calculated tangible BV was flat for the past 4.25 yrs while they earned billions? It tells me the company is just going higher because their financial engineering is convincing people it is more valuable, not because the value of the company per share is actually going up. Isn't that true? The only postive I see is price/book has declined since 7/2000 because many have dumped the stock finance.yahoo.com

To: Dave who wrote (66602)	11/26/2004 4:02:29 PM
From: rkral	Read Replies (1) \| Respond to of 77397

Dave, re "[ed: repurchased shares] go into treasury stock which is listed under Shareholder Equity" No, Cisco retires repurchased stock instead. From the 2004 annual report ... "As of July 31, 2004, the Company has repurchased and retired 956 million shares of Cisco common stock for an average price of $17.70 per share for an aggregate purchase price of $16.9 billion since inception of the stock repurchase program" cisco.com pg 57 (of AR, not pdf) re "Pretty much whenever a company buys back their shares on the open market, book value per share tends to decline. There is one maybe two exceptions to this rule." AFAIK the only exception is a share repurchase when the price-to-book ratio is less than one. Ron