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Technology Stocks : Lucent Technologies (LU)
LU 2.550+0.2%Dec 4 3:59 PM EST
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To: Haim R. Branisteanu who wrote (9023)8/4/1999 10:29:00 PM
From: polarisnh   of 21876
 
Haim,

I certainly do! Plenty! That is why telecommunication stocks like Lucent, Cisco, Tellabs and others trade at such a high premium to the rest of the stock market. Because they are building the roads of the future in these regions.

I agree with you that the lower end of the telecommunications market has a tremendous amount of commodity items such as cellular phones, pagers, and such. That is why those products don't command high margins. They can't because there is a tremendous amount of competition. But when you are talking about gigabit switches, ATM carrier-class switches, call centers, and voice response systems you are talking about elaborate technologies that a few companies like Lucent do well. These are the systems and technologies that developing countries are trying to deploy to play catch up with places like the U.S. to become more competitive.

Without these systems in place, you can't even worry about buying the latest SUV from GM or Ford because the jobs can't support that standard of living. That is one reason why telecom companies deserve higher multiples than your TV or refrigerator manufacturers. These countries are aggressively developing their telecommunications highways not their asphalt highways. And the products that they are buying are made by Lucent not General Motors!

Cheers,

Steve

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