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

To: RetiredNow who wrote (66621)	11/29/2004 12:31:48 AM
From: Elroy	Read Replies (1) \| Respond to of 77397

Very informative and very scary in what it means to the U.S. economy and jobs market. I think a main affect of the increased entry of China and India into the world's economic markets will be wage deflation in the developed countries. It just makes sense with the laws of supply and demand (increased number of workers = cost per worker goes down). And it is morally just - if a laborer in China will do a job for $200 per month, why should a laborer in Ohio get paid $2000 per month to do the exact same job? Answer = they shouldn't. But both the US and China are going to experience some pains as the US citizens have to adjust to the idea that a laborer with only a high school education is not going to be able to have a relatively new car, decent house and two kids on his 2010 wage level, and the Chinese will have to deal with the normal laborers unionizing and demanding more safety, wages, rights, etc. Anyway, in terms of companies like CSCO, its not that important because CSCO doesn't manufacture anything, CSCO's EMS companies have plants in low cost regions, and a network is less price sensitive than other tech hardware areas due to the network administrators hesitance to put different brands of equipment into one network.

To: RetiredNow who wrote (66621)	11/29/2004 2:45:53 PM
From: Elroy	Read Replies (1) \| Respond to of 77397

OT - no one has posted on the MOT board for 5 months, so I'm going to ask this one here. On December 2nd MOT spins out its semiconductor division to its shareholders. The ratio is something like you get 0.11 Freescale shares for every MOT share you hold. So MOT stock should drop about $1.80 the next day. How do the options react? For example, with MOT at $19.30, the December MOT $20 puts are worth about 90 cents each. On December 3rd, MOT should fall $1.60 to, say, $17.70, so the $20 put should be worth at least $2.30. Does anybody know how an stock for stock spinout affect the options available to MOT. Any explanation would be appreciated. Elroy