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Technology Stocks : Lucent Technologies (LU)
LU 2.625+2.9%3:59 PM EST

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To: Mark Palmberg who wrote (3051)7/19/1998 12:24:00 PM
From: Mr. Lucent  Read Replies (3) of 21876
 
mark, my close relative is an eletrical engineer at lucent technologies. he said that couple of things in lucents favor...the telecom market is growing really fast and the high margin products are growing very fast. since lucent's current products are quite low margin (our net margin is about 1.5%, cisco is over 25%, microsoft is around 80%), as we move into the newer markets,the net margin can grow substantially. the stock price tends to follow net
margin. that's interesting. He believes that lucent should acquire ascend if they want to compete with cisco, but he has heard that some people there have mentioned nokia and fore systems, but that's speculative. have a good day! mr. lucent
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