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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Nadine Carroll who wrote (170974)6/7/2002 5:43:34 AM
From: Earlie  Read Replies (1) of 436258
 
Nadine:

To be a viable business, a company must have clients who want their products, but more importantly, at least some of those clients must have the ability to buy their products. For Lucent, both categories (especially the latter) have evaporated dramatically this past year.

Making things much worse is the glut of fire-sale priced equipment dumped into the markets by stretched telcos, or by the debtholders of the telcos that have "foreclosed". Hard to sell new gear when the price of similar stuff is going for "five cents on the dollar".

Finally, one has to look at the debt that any company has to service just to stay alive. The debt servicing dough derives from profits. No profits equals no debt servicing, which leads to the bankruptcy courts. Yes, Lucent's stock is inexpensive compared with former glory days, but one has to decide whether it will survive the ongoing battle.

Best, Earlie
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