Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.670

-2.2%

3:32 PM EST

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To: The Phoenix who wrote (9854)	10/6/1999 3:52:00 PM
From: GVTucker	Read Replies (1) of 21876

Gary, RE: I don't understand why the street doesn't see that LU's valuation is low at these levels. LU still has issues regarding its financial statements in the Street's eyes. The cash flow problem at LU has been continuously debated, and it did improve last quarter, but there is still a worry about LU's cash flow. In addition, LU's pension accounting has given additional ammunition to the bears. A Bear Stearns accounting analyst issued a damaging report about LU's pension income, and stated that LU profit would have declined 15% in fiscal '98 without this income. LU's competitors do not have these issues; although they certainly aren't pristine when it comes to financial reporting (see CSCO and acquisitions, for example), LU's issues are significantly larger, and thus the discount.

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