Asif Suria

Cisco: Compelling at These Levels

Albert, I am in total agreement with you and Prudentinvestor regarding Cisco's dilutive stock options and mentioned as much in the comments when I stated, "but buybacks have not even been sufficient to offset dilution from options granted to employees."

This was one of the reasons I used to stay away from companies like Cisco. Sooner or later shareholders will wake up and Cisco might follow Intel and Microsoft's path of offering a dividend. Intel in my opinion is taking all the right steps towards becoming a shareholder friendly company.

The point of my article was that Cisco appears attractive from a valuation basis and since the inputs used in the analysis on a per share basis, the analysis still holds unless one of my assumptions are off.

Point well taken on the accumulation of profits over the last 15 years. I did not respond as I have not yet had the time to dig through the records to compile the information.