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

To: abbigail who wrote (11940)	12/29/1999 1:40:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 21876

Abbigail, 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 ... Since it is a non-consolidated entity no details have been made available. Perhaps I missed something in the 10-K, and if so would be indebted to you for pointing it out to me. I think it would be illuminating to see the balance sheet of that entity. My view is that an ideal growth company shows strong top-line growth, strong bottom-line growth and decent cash flow from operations. Because growth necessarily limits cash flow from operations due to differences in timing for payment for goods (which increases A/R), payment for parts (which increases inventory), I don't expect a strong-grower to have cash flow match earnings. But I do expect positive cash operating flow. I don't take comfort in your statement: The numbers seem to indicate the longer term need for EQUIPMENT and INVESTMENTS are matched by DEBT and STOCK ISSUANCE. because that seems to echo my fear that continued top-line growth will require infusions of external cash which will have the effect of either increasing leverage or diluting current shareholders. The best outcome is that the company can fund future growth internally. Happy New Year all, CTC