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

To: Elroy who wrote (18520)	8/1/2001 2:53:43 PM
From: Softechie	Read Replies (1) \| Respond to of 21876

Aug 1 2001 2:45 PM In Play Lucent Tech (LU) 6.17 -0.53 (-7.9%): -- Update -- CNBC reporting that company is raising the size of its proposed convertible preferred stock offering to $1.75 bln from $1 bln (see 14:05 comment). Aug 1 2001 2:05 PM In Play Lucent Tech (LU) 6.25 -0.45 (-6.7%): -- Update -- Talk that LU could double the size of its convertible offering to $2 bln. No confirmation of such plans at this time... Hearing mixed reactions to rumor; some considering it a potential positive, as it would go further toward alleviating company's funding issues; others negative on the dilutive effect and arbitrage pressure. Aug 1 2001 6:44 AM In Play Lucent Tech (LU) 6.70: After the close, company announced plans to issue up to $1 billion in convertible preferred stock. The news pushed LU shares 6% lower in extended hours trading.

To: Elroy who wrote (18520)	8/1/2001 3:15:56 PM
From: BWAC	Read Replies (2) \| Respond to of 21876

<I don't get what caused the stock drop> Dilution is the obvious answer. More short sellers piling on. Sure seems weird that people would be lining up to take in a convert bond sale (now LU got such a response they are upping it to $1.75 Billion, with a lower rate, higher conversion price) when everyone is yelling fire about LU going bankrupt. Strange isn't it? Unless of course you have been short a Billion dollars worth or so and are using the convert bond to cover rather than covering on the open market. Imagine that? LU just probably gave an out to Billions of dollars worth of institutional shares sold short. An out with interest. SO maybe LU really fell today because the shorts stopped covering.