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

To: Bindusagar Reddy who wrote (24317)	4/11/1999 1:31:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 77397

Bindusager, I fear that you just don't get it! The fact that capital is so low and generates so much cash is a strength, not a weakness. Look at it this way: each dollar of assets deployed generates almost three times the return generated by CSCO! The second thing you don't get: share buy-backs are dividends (this is mathematically provable) and dividends decrease shareholder equity. On one point we can agree: using stock options to fund salaries is a despicable practice, and is done by virtually all high-tech companies. It is despicable because it is intended as a subterfuge to hide the true cost of doing business. The cost of options is not included as an expense item on the income statement, but is borne directly by shareholders. But that is not a Dell-specific problem. I am hard-pressed to name a single high-tech company that does not do that. TTFN, CTC