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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (170974)	6/7/2002 4:08:52 AM
From: KeepItSimple	Read Replies (1) \| Respond to of 436258

If only CSCO would sell at book.. -------------------------- Lucent's selling at book -- are they gonna go out of business? What gives?

To: Nadine Carroll who wrote (170974)	6/7/2002 5:43:34 AM
From: Earlie	Read Replies (1) \| Respond to of 436258

Nadine: To be a viable business, a company must have clients who want their products, but more importantly, at least some of those clients must have the ability to buy their products. For Lucent, both categories (especially the latter) have evaporated dramatically this past year. Making things much worse is the glut of fire-sale priced equipment dumped into the markets by stretched telcos, or by the debtholders of the telcos that have "foreclosed". Hard to sell new gear when the price of similar stuff is going for "five cents on the dollar". Finally, one has to look at the debt that any company has to service just to stay alive. The debt servicing dough derives from profits. No profits equals no debt servicing, which leads to the bankruptcy courts. Yes, Lucent's stock is inexpensive compared with former glory days, but one has to decide whether it will survive the ongoing battle. Best, Earlie