from briefing.com this am.
'Barron's highlights Lucent, which stock has gone from 58 cents a share on Oct. 11, 2002 to recent a recent high of $5. The article suggests Lucent's days as a purely speculative play may be numbered. The communications-equipment producer is making money again as telephone, cable and wireless companies boost capital spending. Lucent also has discovered the Pentagon's fat wartime budget; it has a contract with Bechtel for telephone switches in Iraq. Susan Kalla, who follows Lucent for Friedman, Billings, Ramsey & Co. says, "Given the company's valuation versus its peers, earnings improvement in 2004 as telecom recovers, and compelling risk/reward characteristics, we view any weakness as a buying opportunity." According to article, LU is good to buy, despite some problems, like pension and benefit plans that are underfunded by about $7.3 billion, according to Morgan Stanley calculations and the $631 million settlement of a suit brought by stockholders who lost a bundle when the shares plunged in 2000 because Lucent improperly recognized $125 million in revenue. However, there also is a chance of upside volatility given LU's CEO Patricia Russo saying the co has been winning contracts for telephone, broadband and wireless networks in Europe, Asia and South America.' |
