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

To: Dee Jay who wrote (9291)	8/26/1999 12:15:00 PM
From: Chuzzlewit	Respond to of 21876

I think you are missing the point. I am not comparing OXHP to LU -- that would be ludicrous. What I am stressing is the importance of analyzing financial data from a cash flow perspective. You can often see things when you look at cash flow that you miss when looking at earnings. [And by the way -- OXHP had large receivables (and they turned out to be bogus).] Another point that I think needs to be stressed: cash flow is vitally important to growing manufacturing companies. Growth is funded by cash flow. I am not talking about acquisitions. I am talking about internal growth. When inventories and A/R grow faster than cash receipts the company must rely on external sources (either the sale of stock or debt) to fund future growth. Here is another apples and lemons case to think about: AMZN. The only reason that this company is afloat today is because of its superb cash flow which is due to the fact that they have low inventories, high payables and no receivables. TTFN, CTC