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

To: smallcapmaven who wrote (18006)	4/3/2001 9:09:22 PM
From: John Soileau	Read Replies (1) \| Respond to of 21876

No. The fact that LU secured a loan with assets doesn't mean the value of those assets just goes away. If the company liquidated itself (voluntarily or in BK), all of the assets would be sold and the debtors would be paid, secured debtors first. If even at liquidation value LU's assets produce funds exceeding total debt, the balance remaining would be distributed to shareholders. The interesting question is what that excess (shareholder's equity) currently is, compared to the share price. I agree with Dave that goodwill must be peeled out of there to get a meaningful figure. John