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

To: Chuzzlewit who wrote (11939)	12/28/1999 8:36:00 AM
From: abbigail	Read Replies (1) \| Respond to of 21876

Dear Chuzz: I agree completely with your second paragraph, A/R and INVENTORY must be managed to increase cash flow from OPERATIONS. It's the stuff above-the-line that most concerns me. The numbers are moving in the right direction, but LUSCENDERS should pray for higher NET INCOME with lower A/R and lower INVENTORY. I am not concerned about the non-consolidated sub because if it is an investment, and is reported in the INVESTING part of the statement management is doing the right thing, especially is the rates are favorable. The numbers seem to indicate the longer term need for EQUIPMENT and INVESTMENTS are matched by DEBT and STOCK ISSUANCE. Would you rather LU could buy EQUIPMENT and INVESTMENTS with cash? Like MSFT? Yes, you and I would! The comment was meant to be rhetorical, thank you. As long as we have the goods customers want, the managed use of leverage seems like a good formula for increasing PROFITS. Best wishes, Abbigail