Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.575

-0.4%

3:59 PM EST

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To: GVTucker who wrote (19672)	3/27/2002 4:47:03 PM
From: BWAC	Read Replies (1) of 21876

GV, I haven't looked real hard at LU debt recently. You sure had me thinking the whole $19 Billion was long term debt. The way everyone has been acting I thought 'geez LU has really dug a debt hole they will never get out of'. But as has been pointed out your number included current operating liabilities as well. Just a bit misleading? Anyway. Current Assets are 2X current Liabilities. Not so bad. Then you have the $5 Billion debt which is a problem. One of the smartest things LU could do once they get their costs structure in line is to start looking around for some smaller companies bulging with cash. That would be the quickest way to pay the debt down. And would be best for the industry, and all the companies in it. The phone companies are playing a two prong game of chicken right now. One that capacity constraints won't occur in due time. And Two that the equipment providers will even be around to supply thier needs at a fair price when the first game of chicken ends badly.

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