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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (11700)	9/2/2001 1:26:30 PM
From: Kevin Rose	Respond to of 14638

The situation hasn't changed. LU has taken on much more debt, and coupled with the fact that they have taken on so much more customer financing, there troubles have not changed. In fact, relative to NT, they are worse off; the terms of their convertable notes were not nearly as favorable as NTs. As far as LU/NT market share, I believe that it was reported that LU is 'dropping its shorts' in pricing. That will help them work off their tremendous inventory, but it does nothing for their balance sheet (actually makes it worse), and does NOT give them permanent market share. Companies do not gain permanent market share via fire sales. It was well understood before the meltdown that NT products were superior and better placed than LU; that has not changed. On the broader side, I believe the root problem is business sentiment. Ways to nudge the business sentiment are, IMHO: rates lower than the 'expected' (shows that the Fed will continue to be aggressive and 'business friendly); weaker but stable dollar (as pointed out in another post); capital gains reduction. A temporary surge of consumer spending, $600 at a time, is not gonna cut it. Hanging your hat on that $600 and a wishy-washy monetary policy will keep us in this trough for a while. Let's face it. Part of the lid is AG himself. Business people now know him as the man who burst the bubble. Whatever happened to a soft landing? He will forever be associated with the internet bubble and how he mishandled it. AG: the golf course is calling you.