Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (8855)	7/26/1999 6:06:00 PM
From: Joel Karlinsky	Respond to of 21876

What's the big deal. Are Lucent's business prospects any less now than they were last week, or last month, or last year. This drop is small time garbage, totally meaningless. All smoke. Just hold your shares and keep buying more when you can.

To: puborectalis who wrote (8855)	7/26/1999 6:38:00 PM
From: Chuzzlewit	Read Replies (5) \| Respond to of 21876

Stephen, There may be a problem. I am a LU shareholder (in at the beginning), and I have watched an erosion of cash flow over the past several quarters. I find this quite disturbing. Just consider these numbers: Accounts receivable increased by 28.1% and inventories increased by 57.9% over the last 9 months, but sales increased by only 19.4% over the same period. And receivables ballooned an additional $730MM from last quarter (about a 10% increase) while inventories jumped $840 MM (about 20% from last quarter). We are witnessing disproportionately high buildups in balance sheet items which speak to poor operating efficiencies. This laxity is causing a mediocre ROIC and perhaps a continuing reliance on additional debt as the company grows. Perhaps the market is taking note of these problems. I wish LU management would clean up its act in this regard. TTFN, CTC