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Technology Stocks : Lucent Technologies (LU)
LU 2.650-2.9%Nov 14 9:30 AM EST

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To: Bindusagar Reddy who wrote (8974)8/3/1999 12:57:00 AM
From: Chuzzlewit  Read Replies (1) of 21876
 
If LU can improve gross margins into mid 50's they can grow EPS 50% not 25-30%.

I don't think so. The reason is that sustained growth ultimately depends on a combination of top-line growth and maintaining margins and containing fixed costs. Increasing the gross margins alone has the same effect on the bottom line as cost cutting.

If LU can improve operational efficiencies and capital deployement efficiencies, sky is the limit. Telecom revolution will give LU a great opportunity to execute well.

Exactly!

TTFN,
CTC
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