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

To: stock bull who wrote (21686)	1/20/2005 8:44:32 AM
From: Elroy	Read Replies (2) \| Respond to of 21876

Why do you think this is the key sentence? Lucent is currently recognizing a huge, non-cash pension credit and has been for the past 5 quarters at least. This allows them to deduct $ from their expense lines on the income statement, although it is only an accounting issue and not a real cash deduction from their operations. Therefore even though they are reporting nice ~10% operating margins, without this pension credit they would be about breaking even on the income statement. However, they can't fool with the balance sheet using accounting credits, so I think a better way of seeing how LU's operations are going is to watch their net cash balance. In December it went down. That's basically it in a nutshell.

To: stock bull who wrote (21686)	1/20/2005 10:32:44 AM
From: David Hansen	Respond to of 21876

They accrue cash for bonuses and payout in the last quarter of the year... that's what you're looking at - I think 4.6BB is a great place for them to be at for cash reserves.

To: stock bull who wrote (21686)	2/3/2005 8:49:49 PM
From: stock bull	Respond to of 21876

Read an interesting article that I received from Schwab. As many of you know, there's been a number of mergers, or pending mergers, among the Telco Phone Companies. The article was written by an Analyst at Prudential Securites. His analysis of the telco industry now indicates that their should be mergers among the telco equipment companies. Given this, are there any thoughts on the likely merger of Cisco and LU? Or, in other words, Cisco buying out LU? If this were to happen, what would be a fair value, on a per share basis, for LU? Is it time to buy LU in a big way? Stock Bull