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: Ridi J who wrote (12509)	1/10/2000 6:55:00 AM
From: Ridi J	Respond to of 21876

How could fiscal 1999 look so good and Q1 2000 look so bad? Hmmm, what's this I found on LU's website: "Compensation of the Chief Executive Officer In fiscal 1999, the company's most highly compensated officer was Richard A. McGinn, Chairman of the Board and Chief Executive Officer. Each year, the Board of Directors agrees on a set of multi-year business and personal objectives with Mr. McGinn. At the end of the year, the committee reviews Mr. McGinn's performance against those objectives. This review includes a detailed analysis of the company's short and long term financial results as well as its progress towards its strategic objectives. In addition, we consider individual factors such as Mr. McGinn's leadership ability, community service activities, ability to execute Lucent's business strategy and the company's relationship with customers and the investment community." Was Rich covering his own nest egg? Gee, none of his failure-to-execute happened until AFTER his compensation review at the end of fiscal 99! Naw, too obvious...

To: Ridi J who wrote (12509)	1/12/2000 10:43:00 PM
From: Jack Whitley	Respond to of 21876

<<You're making this up... McGinn himself repeatedly stated in the conference call that this was NOT Y2K-related in any significant way.>> No, I'm not making it up, we got our patch in October 1999. A friend heading telecom at another business in our city got patches for their seven switches just before we did. This caused us all quite a bit of concern. This was happening everywhere. I doubt this is something that LU would advertise in a conference call. There may not have been a Y2K related slowdown in optical, but there was definitely a 2nd half pause (in growth) in what the press was calling the "archaic" part of LU's business. I heard this directly from a LU rep. My point was that this "archaic" business is not dying as the press thinks, far from it. But there was a slowdown in spending because people were basically locking down. Now, as we head into the New Year, LU has plenty of software products to allow (thousands of) businesses with G3 and R3 switches to migrate them to CRM data and VoIP applications. I got a demo of some of these applications in November 1999. Very slick, but again, not many sales before Jan 1st. It will be a different story in 2000. <<McGinn and Peterson state repeatedly that there's nothing wrong with the market, that the HUGE shortfall is all their fault, but I don't see them offering to compensate MY loss from THEIR blunder out of the more than $30 million worth of insider sales in November alone..>> I am so sorry for your loss. It is good to cry, as you are doing above, and get those feelings of remorse out of your system. It might even be cathartic for you to sell out, or better yet, short the stock. Good Luck. jww