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

To: Mr.Fun who wrote (10349)	10/19/1999 7:35:00 PM
From: Kent Rattey	Read Replies (1) \| Respond to of 21876

Mr Fun, Just one clarification of your post. <The most prevalent one today said LU was factoring receivables by selling them to their pension plan. Second, these receivables are not bad debt, so selling them for a discount is just bad business. Third, even if LU could factor its receivables, pension plans can't make those kinds of investments.> Factors per se, won't take bad debt. In fact, it is just the opposite. Most factors are extremely strict in the receivables they will take on. Companies factor primarily for cash flow, typically for 1% over prime. In the rag industry, it is very, very common. The problem with this financing is the cost and restrictions it places on sales due to the fantastic quality of receivables they must generate to keep the factor happy. Additionally, most factors are owned by banks...they have enough bad debt of their own. <VBG> Collection agencies would be interested in their bad debt. No chance in hell they will factor, however, a DSO of this level for all the companies in this industry is alarming. It is typically easy for companies who are growing rapidly to control DSO, due to the fact that sales are constantly in increasing. Thanks for your input. Kent

To: Mr.Fun who wrote (10349)	10/19/1999 7:40:00 PM
From: Techplayer	Read Replies (2) \| Respond to of 21876

Mr. Fun, Thank you for your in-depth analysis of recent issues driving this stock. Given your adamant stance in this post, I assume that you are quite bullish on LU's quarter. Are you buying at this level? The little guys like myself have no exposure to the types of negative hype that drive a company of this size into a downwards spiral. Your comments regarding a relationship between receivables and LU's pension fund are particularly interesting. can those starting such rumors be held liable if they are benefiting with a short position from apparent, outright lies? Thanks for taking the time to post this info for those less aware on this thread. Brian

To: Mr.Fun who wrote (10349)	10/19/1999 8:36:00 PM
From: hitesh puri	Read Replies (1) \| Respond to of 21876

Mr. Fun, one thing that is eluding me is that if the hedge funds are so sure and riding big $$$$ on Lucent blowing up dont you think they have enough info about some potential glitch in the report ? Like BR pointed out the whole timing of these rumors coming out well into the quiet period and the media being fed this crap looked way too suspicious. -Hitesh