Strictly: Drilling II Message Board

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Strategies & Market Trends : Strictly: Drilling II

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To: TheBusDriver who wrote (15629)	7/12/2002 10:51:57 AM
From: Jon Cave	Read Replies (1) of 36161

I picked LU over NT because of its balance sheet. LU has around 3 billion in long term debt that doesn't start coming due until 2006 or 2007. LU has about 5 billion in cash and around 800 million in short term debt. LU will be around at least until 2006 or 2007. LU was one of the first companies to get into trouble in the telecom sector a good two years ahead of the tech burst. This may be a small advantage for them as they started cleaning house early. NT is the one that might not survive. Too much short term debt. I haven't decided if that would be an advantage for LU if NT went under. Also, the baby bells are probably in a stronger position now than they were a few years ago when all the newcomers were supposedly going to put them out of business. Also, you get Bell Labs. That has got to be worth something. I loved the stock when it was below $1.50 putting a market cap of about 4 billion on the company. This thing could easily drop back below $1.50 again, but I hope we have seen the bottom. Go to yahoo and look at the financials and especially the balance sheet. The two most important things to look at is the cash and short term investments and the debt on the balance sheet.

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