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: MikeyT who wrote (12960)	1/24/2000 11:06:00 PM
From: RavBruce	Read Replies (1) \| Respond to of 21876

Shares do not always get split as in the sprint case. Sometimes they issue a tracking stock and you have a choice to take all or trade in some shares for the tracking stocks. There was a number of articles a month or two ago because of AT&T issuing a wireless tracker. I remember the historical data showing that many of them don't do well or one part does much better. GM created the concept with GME (now EDS) and GMH (Huges). EDS has done much better on its own. It is often better to spin out the company (how Lucent got its start) because then the tracking stock is controlled by its executives, with its own board. Often, the parents takes the profits and is not always willing to make needed investments or decisions (especially if it is a small part of their overall company). With a hi-tech stock, delay could be crucial. Having said all of this, I think an optical tracking stock will do very well for its shareholders. I would rather see an IPO and spin-off of some shares with LU holding a stake. That we, LU and the child do well.

To: MikeyT who wrote (12960)	1/25/2000 5:04:00 PM
From: Georgeb	Respond to of 21876

Hi Mikey, I think Bluetooth is going to be important, but the revolution in access and optical infrastructure is where the big revenues are going to come from near term. When the circuit switched world is ready to go to packet, then that will be Lucent's next big play.The next generation of cellular to be deployed next year first in Japan, is going to use a packet backbone. It will provide circuit switched and packet services, but the packet will carry the hi-speed traffic.