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

To: MulhollandDrive who wrote (1120)	12/12/1997 5:19:00 PM
From: Dan O'Donnell	Respond to of 21876

Lucent is using cash instead of stock for aquisitions because they get cash very cheap (via highly rated corporate bonds @6-7). They think their stock price is undervalued (at 5% net profit with their growth rate ... they are not managing for profit ... they are managing for revenue growth/market growth = acquistions). When you think your stock price is low buy back stock make acquisitions with cash When you think your stock price is high do a Worldcom ... try and buy MCI for stoc make huge acquisitions with stock quick issue more shares in public offerings to raise cash quick my 2› dano