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

To: Clay Takaya who wrote (11906)	12/23/1999 10:39:00 AM
From: stilts	Read Replies (1) \| Respond to of 21876

Clay, you said, "I think Chuzz's point is that the positive cash flow that LU showed last quarter was a result of this repositioning of this receivable and not as a result of operations. Someone please correct me if I am wrong, but my understanding is that Mr. Fun was claiming that the positive cash flow was exclusive of this item." There are two pools of receivables involved in the securitization: Lu sold $600 mil of receivables for CASH. Another sum of receivables, the "cushion" for the cash buyers of the $600 mil of receivables was the only sum that could be considered "repositioned", as you put it. I do not believe the collateral "repositioned" receivables affected, plus or minus, Lu's accounting for cash flow. The $600 mil of receivables sold was properly deemed adding to cash flow since they were actually sold for cash.