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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (18726)	1/14/2000 8:04:00 PM
From: Sye Walsh	Read Replies (1) \| Respond to of 57584

Sanford Bernstein senior research analyst Paul Sagawa said he was hearing that Lucent was part of an ongoing SEC inquiry about companies writing off in-process research and development expenses instead of amortizing them. He said that the inquiry involved many companies. ``By no means is this specific to Lucent, nor is it necessarily an indictment of their accounting practices,' Sagawa said The investigation appears to be a general look at a number of companies. Amortization has many grey areas that can be read in a variety of ways. Who differentiates between what percentage of the research has been completed, and more importantly the value of that completed. At a certain dollar value expensing the costs is not allowed, but time factors can create windows so that expensing can be used. I think you are correct. An attempt(successful by the look of it) to beat Lucent down some more, and get in at a real basement. Sye

To: American Spirit who wrote (18726)	1/14/2000 9:35:00 PM
From: Baton	Respond to of 57584

Spirit: I agree on LU. I bought again at $52 today. I bought it last fall at $62 and watched it hit the mid 80's just a couple weeks ago. I'm sure it will get there again. Lu's problems are temporary and it will be a darling again by early spring or sooner. The SEC thing is just a rumor to take advantage of. You really don't get that many chances to buy quality this cheaply. Baton

To: American Spirit who wrote (18726)	1/14/2000 10:56:00 PM
From: Rande Is	Read Replies (3) \| Respond to of 57584

Spirit, I believe you are correct. The Lucent rumor was too much. Sometimes the shorts get greedy and pass these rumors. . .but they are obvious and even ridiculous. This one is. I think it may continue to sell on Monday, if the rumor is not absolutely destroyed. . . but I think the bottom will be hit fairly early in the day and recovery will be swift. You will be having an Earnings Smorgasbord, Spirit. All your favorite dishes coming up . . . UIS, BEBE, KMAG and later ANF. . . we may joke now and then, but the way you are doing it is a tried and true method of seeing gains. It is good to play high flying high techs. . . but it is also good to play undervalued beaten downs. . .and the latter will usually not bite back. A strong yet aggressive portfolio will have a combination of different plays. . . growth, value, techs, long-shot small caps, sleepers, etc. Take care, Spirit. . . Rande Is