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

To: Paul Shread who wrote (21876)	2/3/1999 4:26:00 PM
From: Thomas Haegin	Respond to of 77397

Off-topic: WCOM Paul, as I see it, yes, WCOM indeed wrote quite a bit of junk off in so-called "Acquired and in-process technology", the stuff that the SEC recently takes a closer look at. I personally have no particular problem with writing this "goodwill" off rather quickly in that it allows WCOM to focus on the business going forward. Taking another look at it, one can argue that these charges eliminate future risk because you are deliberately valuing assets lower than book. Keep in mind this is a non-cash charge, so actual cash-flow is not changed. In Europe, this was accepted standard until recently, but it seems that US GAAP is of a different opinion. 2ndly, WCOM indeed is cutting costs on the MCI side, to the point that most of the layoffs occur there. Ex-MCI managers are being measured up against new performance benchmarks, if not already fired, and apparently, many old perks have been drastically slashed. Over at the SI WCOM thread, some folks even complain that work morale is low or at least that HR dept. is handling the transition badly. But just recently it seems though that some new HR people have come in and I expect the situation to improve. Obviously brain drain is not a good thing to have. Bernie Ebbers record on integrating cos. and keeping costs low is very good. WCOM has excellent potential and a keen management team with a great record. I consider WCOM a key communications co. to own for the long term. But of course, this is all JMHO. Hope this is of some use, greetings, Thomas