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

To: Paul V. who wrote (66808)	1/5/2005 9:29:41 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77398

Do you really believe companies will refrain from doing business in the U.S. just because they have to expense options? IMHO, that's silly. Companies do business in different countries based on many factors including the cost of labor, labor talent in various geographies, tax benefits, geographic density of customers, etc. When companies finally have to expense options here in the U.S., they won't be able to get away with not expensing them, just because they hire a bunch of Chinese people in China. They'll still have to expense them. So the only way for Cisco to avoid expensing would be to move all operations overseas, which they'd never do. At the end of the day, most investors around the world invest in the U.S. primarily for 2 reasons: 1) superior growth potential and 2) transparency of financial statements. We need to continue to compete in both of those areas to continue to attract investors from around the world. Right now, shareholders don't like the fact that some companies spend most of their profits on employees. So they want that in the income statement so that a little more balance will be struck between allocating profits between shareholders and employees. That is why we're seeing FASB finally having the guts to act. Shareholders are fed up.