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To: lml who wrote (3081)	9/11/2000 7:24:54 PM
From: Nevin S.	Read Replies (1) \| Respond to of 3299

On the subject of vendor financing... From The Street.com on Nortel. (lead in: Cramer is speculating or I should say spitballing the reason behind the recent decline in NT's stock price) ....snip... Loss of a big customer is always a possibility. Nortel does vendor financing. They did vendor financing of that Logon America I wrote about recently. Maybe one of their clients defaulted. We keep close tabs on that, but it does happen, as we know from Ciena (CIEN:Nasdaq - news) earlier in the week. While this is always a possibility, we couldn't figure out who people were guessing about today, other than Winstar (WCII:Nasdaq - news) because it was down. We felt hedged anyway, because Winstar is a big customer of Lucent and we had the puts on Lucent. Cisco, Nortel and Lucent are always gunning for each other's customers, but Nortel has been winning more than its share, especially in optical. (These companies are very competitive. They have to do what's necessary to win important orders, including, at times, financing the customer. This is not heretical. Did you ever notice how much money car companies make in car loans? It's a good business and these companies reserve against the problems. I am never that scared about vendor financing, because it's part of the game. These companies have well-paid risk managers who see it as their job to say no to credits that might not pay. It is not, per se, a dangerous thing to do.)