these guys like lucent over cisco at these prices. i would tend to disagree. what do the rest of you think?
regards
--- The Bull Market Report
> 5. MICROSOFT TAKES STAKE IN HOME NETWORKING
> COMPANY
>
> Microsoft (MSFT, $100) said it would take an
> equity stake in Itran
> Communications Ltd., which makes hardware and
> software that allows the
> transmission of data through home power lines.
> The deal moves Microsoft
> further into the home networking market, which
> involves linking multiple
> personal computers within the home plus
> connecting so-called "smart"
> appliances, such as refrigerators and microwave
> ovens that feature Web
> access.
>
> COMMENT: We print this to bring to your
> attention the continued push into
> the new Home Networking business from the
> biggest hi-tech firms in the
> world. Echelon (ELON, $44), who we love so
> much, has partnered with Cisco
> Systems, Toshiba, GTE (GTE, $67), Honeywell
> (HON, $42), Nippon Telephone
> and Sun Microsystems (SUNW, $94). Good
> partners are key and good
> competition from Microsoft never hurts a market
> either.
>
>
> =================================================
> =================================================
>
>
> 6. CISCO EARNINGS BEAT ESTIMATES AGAIN
>
> Cisco Systems (CSCO, $131) reported that fiscal
> second-quarter profit rose
> 49 percent as the world's biggest maker of gear
> that powers the Internet
> sold more equipment to telecommunications
> companies. The company also set
> a 2-for-1 stock split, its ninth since first
> selling shares to the public
> in February 1990. For the period ended Jan.
> 29, it had net income of $906
> million, or 25 cents per share, an increase
> from $609 million, or 17 cents
> per share, a year ago. Sales rose 53 percent
> to $4.35 billion from $2.85
> billion, better than the 41 percent rise
> expected by most analysts. Cisco
> beat analyst forecasts of 24 cents a share.
> While sales of routers and
> switches to big businesses, which accounts for
> half its sales, have slowed
> from their historical 30-percent growth rate,
> sales to telecommunications
> firms have been soaring, rising 75 percent or
> more.
>
> COMMENT: Very strong earnings from a very
> strong company. The only
> negative we can come up with is the high PE.
> If you extrapolate the 25
> cents out for a year, you are looking at a
> company at 130 times year 2000
> earnings. This is high, high, high. BUT, put
> it in perspective. What is
> Amazon's PE? [Infinity.] What is AOL's?
> [148] Now, here's a better
> question. What is Lucent's (LU) PE? [And the
> answer is.. 80.] Our
> take? If we had a CHOICE, we would be buying
> Lucent at $53 over Cisco all
> day long. More on Lucent below . We LOVE LU
> at this price.
>
> BTW, the Cisco stock split will take effect on
> March 22
>
> John Chambers for President!
>
> 7. LUCENT'S BELL LABS DEVELOPS NEXT-GENERATION
> "ENGINES"
>
> Researchers at Lucent Technologies' Bell Labs
> have developed a new
> approach to building the signal processing
> "engines" that will be required
> in tomorrow's performance-hungry communications
> networks. The Bell Labs
> approach, called Daytona, allows multiple
> digital signal processors (DSPs)
> to be integrated on a single silicon chip to
> provide up to 16 times faster
> processing than conventional DSP chips.
>
> COMMENT: We have said it before and we will
> say it again: Lucent (LU,
> $53) is a long-term steal at these prices.
> They are innovation
> personified, and innovation still remains at
> the heart of the New Economy.
> We IMPLORE you to take a hard look at Lucent at
> these prices. Down from a
> high of $84 in December because of an off
> quarter, we predict that Lucent
> will touch new highs some time this year.
> |
