Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.560

-0.4%

3:59 PM EST

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To: MMW who wrote (8898)	7/28/1999 1:36:00 PM
From: Chuzzlewit	Read Replies (1) of 21876

MMW, I think you are making some errors. Debt is not a bad thing. It provides leverage -- better returns for shareholders. And LU's debt levels are not excessive. I view the company's mediocre cash flow as an opportunity for improvement, which, when realized, will provide investors with a tremendous upside. I find it interesting that you point to MSFT and CSCO, because I view those companies as paradigms of poor financial management. For example, MSFT has about $42BB in cash. But cash is a dead asset. If it is not deployed in cash-generating activities it is useless. I also find it odd that you consider LU's price too high without generating similar qualms about MSFT and CSCO. In fact I exited from CSCO a couple of months ago simply because I felt that the price was out of all proportion to prospective earnings and cash flow. TTFN, CTC

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