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

To: RavBruce who wrote (12961)	1/25/2000 9:03:00 AM
From: Sawtooth	Respond to of 21876

<<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).>> Bruce: This is my concern, also, and it might relate to a need for further understanding of the pros and cons on my part but I'm naturally attracted to the clean separation of a spin-off with the parent retaining some equity. Tracking stocks seem to have much inherent potential for the financial and management lines and priorities to get a little murky. You point to LU's spin-off from ATT as an example of something that worked well. Of course, the list is long; for me, the most recent was QualComm's spin-off of Leap Wireless which has worked out fabulously. That said, there might be some very good advantages of a tracking stock over a spin-off; I'm just not well aware of them and I trust that McGinn and the BOD have adequately analyzed the matter and will make a decision based on what is in the best long-term interest of the company's owners. ........VVVVVVVVVVVVVVVV