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

To: Mr.Fun who wrote (8992)	8/3/1999 8:28:00 PM
From: Bindusagar Reddy	Respond to of 21876

Thank you Mr. Fun. You have summarized it well. I think LU is very conscious of this fact. They are paying attention. Whenever Lehman Brothers guy turns bullish, the DSO and balance sheet talk will come to an end. This guy keeps mentionin the DSO again and again. But you have to take into the account who your customers are. As CISCO sells more to carriers their DSO will swell as well. AT present they sell 80% to enterprise, hence they enjoy better DSOs. It is unfair to compare these companies on the same scale. BR

To: Mr.Fun who wrote (8992)	8/4/1999 9:45:00 AM
From: elmatador	Read Replies (1) \| Respond to of 21876

If you own a Dell computer in three years time you can easily swap it by a new Compaq model. (We can extrapolate this to Cisco's and Tellabs line of business.) But if you operate a C.O. with a 5ESS, EWSD or AXE, it is extremely difficult to displace you from there. Waiting those 6-9 months to see your cash, is offset by the benefit of the futurer revenue streams: to sell software upgrades and services and wrap-around stuff to that platform you've put there. This picture I'm putting here, is not being captured by the financial snap shot. Neither does much to make Ericsson and LU look better vis a vis Dell, CSCO or Tellabs. I think is very difficult to build a network with an eye on the bottom line.

To: Mr.Fun who wrote (8992)	8/4/1999 1:25:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 21876

Thanks Mr. Fun, I was especially fascinated by your discussion of the differences in payment habits between European customers and their US counterparts. However, it is not unreasonable to assume operating margin improvements in the vacinity of 100 -150bp per year can continue for a minimum of 5 years. What is the basis for this statement? Somewhere along the line, good old fashioned earnings growth seems to have gotten lost in the shuffle. I agree with the sentiment but perhaps we should be looking at merger-adjusted cash flow instead of earnings. Earnings are too much a function of accounting gimmickry. My favorite pieces of nonsense are IPR&D write-offs as one time events and the similar tendency to ignore merger and acquisition costs because they, too, are one-time events. When is the last quarter that CSCO did not incur a one time event <VBG>? Isn't it reasonable to adjust earnings by capitalizing these items? In a recent acquisition, FORE went so far as to try to write off the bulk of the acquisition cost as IPR&D despite the fact the technology they were writing off had actually found its way into product! TTFN, CTC