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Technology Stocks : Alcatel (ALA) and France

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To: elmatador who wrote (3727)1/9/2002 8:54:57 AM
From: James Calladine  Read Replies (2) of 3891
 
"Alcatel was described as a company with potential, but also needed to focus on restructuring, the bank wrote.
"Currently, margins are too low and working capital too high to generate sustainable free cash flow and economic returns once revenue growth picks up," JP Morgan commented"

Can someone explain to me how "working capital too high"
affects the ability to generate free cash flow?

Or is this just more "analyst-speak"?

Namaste!

Jim
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