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

To: David Hansen who wrote (20645)	8/7/2002 8:35:25 PM
From: Gottfried	Respond to of 21876

David, first let me say I have a small position in LU bought under $5. I think LU will survive. But I'd be extremely careful with leaps. Recovery can take longer than we think. An article in the latest Forbes magazine added to my concern. forbes.com The local Bells may be next and they're cutting capex. Gottfried

To: David Hansen who wrote (20645)	8/7/2002 10:53:09 PM
From: Bridge Player	Read Replies (1) \| Respond to of 21876

David, LU Jan. 2005 2 1/2 leap calls can be bought for less than $1.00 as of today's close. That is nearly 2 1/2 years out. LU traded at over $4/share as recently as June, 2 months ago. Lucent now sells for less than .5 times current sales run rate, and about .25 times sales run rate as recently as a year ago. As of 6/30/2002 they have $5.4 billion in cash and short term investments, vs. long term debt of $3.2 billion. They have a huge installed base, high credibility with their customers, and of course the priceless Bell Laboratories. Caveat: Be aware of potential bias. My dad worked for Bell Labs for over 30 years. He died many years ago.