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Technology Stocks : Lucent Technologies (LU)

LU 2.695

+0.9%

Jan 27 3:59 PM EST

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To: stilts who wrote (11894)	12/23/1999 1:54:00 AM
From: Chuzzlewit	Read Replies (1) of 21876

Stilt, sorry, I stand by what I said. Look at the words: Lucent sold approximately $625 million of accounts receivable to a non-consolidated qualified special purpose entity ("QSPE") (this is a creation of LU -- it is not another corporation!) which, in turn, sold an undivided ownership interest in these receivables to entities (who owns these entities? are they more LU entities or are they other companies? the 10-K does not say) managed by an unaffiliated financial institution. Also, nowhere does it mention the consideration received for the A/R. And the word 'cash' is not mentioned at all in the transaction. It is only mentioned in the cash flow statement, which, as I explained before, is simply a consequence of considering a security a financing activity, not an operating activity. The bottom line is we don't know what LU got for it, but the cash flow statement seems to indicate that they did not get cash! TTFN, CTC

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