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


To: rkral who wrote (66617)11/28/2004 10:27:16 AM
From: Dave  Respond to of 77397
 
Ron,

Do you expect the stock price to increase over the long-term if the book value doesn't increase?

It can happen. For example, in slow growth industries, a company can borrow money to buy back their stock. As such, as long as the company continues to grow its top and bottom lines, the "stub" will grow more since the company has more financial leverage.

Dave