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Technology Stocks : Lucent Technologies (LU)
LU 2.610+0.6%Jan 15 3:59 PM EST
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To: Mana who wrote (13756)3/2/2000 8:55:00 PM
From: Steve  Read Replies (1) of 21876
 
Chris,

Thanks for the reply. It's a tough sell to the investment community. What is being spun off are all the dead-end enterprise pieces. All the growth enterprise bits are being retained by Lucent. I've been talking with another Lucent employee and she says that the new company is a piece of crap. She's a long time employee from the AT&T Long Lines days and is a mid-level manager now. The day before the spinoff she says she's exercising all of her options that she can and moving everything in her 401k to mutual funds. She expects this new venture to drop like a stone because a growth rate of 5% per year isn't going to attract many new investors and current Lucent stockholders will sell off their Company X shares ASAP, at least in her opinion because who wants to own a POS (her words not mine).

As to your AT&T/Lucent spinoff analogy you've got to remember that what is being spun off now is basically what was spun off from AT&T 4 years ago minus the service provider 5ESS product lines. Most everything that is of value at Lucent today was acquired after October 1996 and has been targeted at the service provider market. But Lucent, by keeping, the growth part of the enterprise business is crippling the new company out of the gate.

I'm trying to get a perspective on this new venture and right now I have two viewpoints that are 180 degrees apart.
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