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

To: Dave who wrote (18536)	8/1/2001 8:00:44 PM
From: Dave	Read Replies (1) \| Respond to of 21876

all, I was looking at Lucent bonds. The bonds that mature in either 26 or 28 have a YTM of approximately 10%. As of quarter, Lucent had Interest Expenses of 115M/Q. Include the preferred dividend of 140M/yr... Lucent's annual interest/dividends are 600M.... As of last Q, Lucent had 2.29B in cash.... Question: can they survive?

To: Dave who wrote (18536)	8/1/2001 9:00:31 PM
From: Gary105	Read Replies (1) \| Respond to of 21876

Its win-win re. convertibles. Yield of 8% increases to over 40% for hedge funds who arbitraged by shorting equivalent number of shares assuming conversion: 8%/(7.48 - 6) = 40+% Given 1.75 Billion offering, amount of stock to be shorted is about 230 - 240 million shares. Look for shorting to continue tomorrow - I added to long position today.