Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.975

-4.6%

3:59 PM EST

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To: matt dillabough who wrote (21778)	9/8/2005 8:43:37 AM
From: matt dillabough	Read Replies (1) of 21876

Susquehanna initiates LU with a Negative. Firm believes the co's favorable exposure to high growth mkt segments remains confined to its CDMA product, with that mkt experiencing 20%+ growth in recent years. They note that CDMA makes up 45+% of the co's rev and they do not see the co materially improving its presence in high-growth wireline segments such as VoIP, GPON, or IPTV in the near future. However, they are now approaching 24 months since worldwide service provider capex normalized and yet the co's overall operating profit margin (when adjusted for pension effects) still hovers near zero, lagging the majority of its peers. Firm thinks that combination seems at odds with the current rich valuation.

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