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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.99+0.2%Jan 12 3:59 PM EST

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To: Chris Carlson who wrote (23407)3/4/1999 4:42:00 PM
From: RetiredNow  Read Replies (2) of 77400
 
To all:

I remember rebutting someone (I think it was jach) on LU's competitiveness awhile ago, because I believe they have cashflow problems as evidenced by last quarter's results. Well, today's news seems to be a confirmation of that.

Lucent Technologies to sell $1 bln in debt

They wouldn't be selling debt to raise cash if they didn't have cash flow problems. I know some of you will tell me that this is a routine corporate strategy. Let me pre-empt those who believe that by saying yes, this is a typical OLD WORLD corporate strategy. However, most successful SV high tech companies (read as Cisco) are able to grow through operating cash flows, not financing. So it is interesting that Lucent has to resort to borrowing in order to compete against its smaller but nimbler rivals.
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