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: Mighty Mizzou who wrote (9465)	9/9/1999 4:12:00 PM
From: Mr.Fun	Read Replies (3) \| Respond to of 21876

First Kudos to Mighty Mizzou for a good post - enough people flame him for his bad posts, I thought someone should praise him for his good ones. Second, more news on why LU was down to day. As I noted previously, Robbie Stephens made comments in a conference call that PBX sales were down and pointed at LU - curious, since they don't actually cover LU. More importantly, Montgomery is out with a written call expressing concern over the 4th quarter and suggesting inventories would be a problem in the quarter. This is, of course flat out wrong, which I found out from CSFB, Bernstein and from LU itself. Apparently, the CFO has said publically that inventories are expected to be down in 4Q - IN DOLLAR TERMS. We will see what the action is tomorrow as this becomes more widely disseminated. My sources say sales to service providers are on fire - Optical - growing 50%+, Wireless growing 30%+, SoftSwitch revenues ready to bill at Level3, Ascend having its best quarter ever, Class 5 switch growth of better than 25%. Believe it or not, most of the institutional squeamishness about this stock stems from balance sheet concerns (ask Chuzz) and Y2K 1Q concerns. BTW MM I don't think you'll ever see $30 in LU, so load up now. Once LU makes good on its promised 5-10 day improvement to DSOs and sequential dollar reduction in inventory, look for significant multiple expansion to make up all of the ground lost since July and then some.