Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.820

-0.5%

3:59 PM EST

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To: David Hansen who wrote (21747)	6/2/2005 9:55:25 AM
From: Elroy	Read Replies (1) of 21876

they are undoubtedly the strongest 3G player. Nope. Ericsson is the undoubted leader in 3G with something like 35%-45% worldwide market share. LU is one of the four little musketeers (NT, NOK, MOT and LU) with something like 10%-20% share each (depending on how you count it). And what's so good about a company that finally BROKE EVEN (ex the pension credit) last Q? At LU's valuation (enterprise value to sale of 1.6x) that's horrible. MOT has current operating margins (no pension mumbo jumbo) of ~10%, and MOT's EV/Sales is 1.1x. I think LU is a house of cards, and pension credit is fooling people. Do you want to pay 1.6x sales for a company with an operating margin of ~2%? AV (LU spinout) has an operating margin of ~7% and trades at 0.8x sales. Anyway, good luck. Just pray the pension benefit doesn't vanish or methinks your foundation will collapse with it.

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