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: Edwarda who wrote (12014)	1/4/2000 8:26:00 AM
From: Zoltan!	Read Replies (3) \| Respond to of 21876

Hi Edwarda, you are correct of course. Something to consider for your 2000+ investing: personalwealth.com S&P's work is noteworthy - they don't have the inherent conflicts of most others. btw, you really spiked the eggnog!

To: Edwarda who wrote (12014)	1/4/2000 2:33:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 21876

Edwarda, Thank you for reminding the thread that the issue I raised is cash flow. Tom Meredith (CFO of DELL) came up with a measure of the cash flow generating activity of a company which I believe is quite useful. It is called the cash conversion cycle (CCC), which is the sum of days receivables and days inventory minus days payables. The first is expressed in terms of days of receivables outstanding, while the latter two are expressed in terms of COGS. The interpretation of this metric is the length of time it takes to convert an order into cash. Using this measure (and using contracts in process as part of inventory) I find that LU had a CCC of 160.1 days in 1999, up from 137.0 days in 1998. By contrast, CSCO had a CCC of 62.3 days in 1999, down from 69.8 days in 1998. One modification I believe that is appropriate to Meredith's method would be the inclusion of deferred revenues. TTFN, CTC