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

To: Cynic 2005 who wrote (21024)	1/22/1999 2:27:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 77397

Stocks do trade on a cash flow basis. That is the entire point behind "disocunted cash flow". Second, if Levitt had notified Cisco, then Cisco would be compelled to defer reporting income pending resolution of the accounting issues. See for example what happened to NETA which had received such a letter from the SEC. It isn't a question of taking more write-offs then allowed (as you so glibly state) but the fact that the SEC is retroactively changing the guidelines of allowable writeoffs. I think that the SEC's initiative is a move in the right direction, because it will make accounting for the company's activities more realistic. But the retroactive requirement will leave many unsophisticated investors dumbfounded. This is undoubtedly the cause of your concern. But those of us who understand finance know that the only way to get a decent picture of a company is to generate free cash flow numbers. I have no fear. TTFN, CTC