Lucent Technologies (LU) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Lucent Technologies (LU)

LU 2.825

-2.2%

Nov 11 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bill who wrote (17408)	12/22/2000 4:38:38 PM
From: ntrules	Read Replies (2) of 21876

Was the writing on the wall long time ago? I hate to slam a stock when it is down on its luck, and before I go any further, don't be deceived by my name. I am long LU and hurting but seriously considering throwing in the towel... About a year ago I came across a magazine article that went into painful details on how companies fudge their results. Lucent was discussed in detail and especially their spinoff from AT&T. During this spinoff, the first quarter Lucent had set aside some contingency funds (1.5 billion or so) to lay-off employees. This quarter they had taken a blood bath. However, it turned out that over the next several quarters they were adding significant unused portion of the contingency funds back to the bottom line because normal attrition was adequate to reach the headcount reduction targets. The article went on to say how companies often take a blood bath and then make their numbers look good for several quarters. Something tells me that their guidance for next quarter might involve similar fudging. I for one would keep a close eye on any funny items that appear in the income statements for the next several quarters. When I was reading the abovementioned article, I thought that the author was crazy to suggest fudging by Lucent. Coming to think of it now, I have the strange feeling that the writing was on the wall since the spin-off...

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next