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Technology Stocks : Lucent Technologies (LU)
LU 2.520-1.4%Nov 26 3:59 PM EST

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To: Mr.Fun who wrote (10362)10/20/1999 8:24:00 AM
From: GVTucker  Read Replies (1) of 21876
 
Mr. Fun, RE: Hedge Funds and rumors

There are indeed some hedge funds that spread silly rumors such as the factoring/pension fund drivel that is thrown around. However, these people are small time, and do not carry close to a major short position in LU. No one of importance on the buy and sell side believes them, and opinions like that are irrelevant.

The major shorts in LU are for the most part highly knowledgeable in this business. They are focused on the balance sheet issues and the cash flow at LU. They do not engage in rumor mongering in order to make money, they depend on solid fundamental analysis to make money.

This does not mean they're always right. Indeed, such highly shorted stocks such as AOL or AMZN come to mind. But it does mean that their opinion should be listened to and given strong consideration.
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