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To: JohnG who wrote (33966)	7/2/1999 11:31:00 PM
From: JohnG	Respond to of 152472

Lehman's "Value List" found short on value. John G ehman Unleashes a Value List That's Short on Value Stocks By Justin Lahart Senior Writer 7/1/99 11:06 AM ET Maybe it shouldn't come as any surprise that there aren't any stocks that usually carry the "value" moniker in Lehman Brothers' annual list of "10 Uncommon Values," released today. Lehman's strategist, after all, is Jeffrey Applegate, one of the most bullish on the Street. While many of his counterparts have been talking up things like the cyclicals, saying that with the world recovering it's time for money to come out of high-multiple stocks, Applegate's continued to pound the table on big-cap growth. Sure, he admits, there may be periods of cyclical outperformance, but he just doesn't trust in his ability as a market timer to catch those moves. So he focuses on the stocks he thinks that, a year or so from now, you'll wish you owned more of. Lehman's Uncommon Values COMPANY CURRENT PRICE LEHMAN 12-MO. TARGET America Online (AOL:NYSE) 114 7/16 200 AT&T (T:NYSE) 57 1/4 73 Firstar (FSR:NYSE) 28 15/16 42 Ford (F:NYSE) 57 11/16 75 General Instrument (GIC:NYSE) 43 5/16 55 Intel (INTC:Nasdaq) 60 13/16 90 KLA-Tencor (KLAC:Nasdaq) 69 15/16 84 Eli Lilly (LLY:NYSE) 73 3/4 110 Microsoft (MSFT:Nasdaq) 89 13/16 130 Tyco (TYC:NYSE) 97 150 Source: Lehman Brothers Packed with growth, the top-10 list looks like something Applegate would come up with. It isn't. "This whole process is completely unencumbered by any kind of macro call," says Applegate. "We challenge our analysts to pick out the stock they think can outperform the market in the 12-month period starting today. It really is bottom-up." Applegate does find the list instructive on the macro level, however. He points out that nine of the names on the list are world plays that participate in the "ongoing globalization process." And six of the companies on the list participate in what he calls the "convergence of PCs, telecom and telephony" -- a major theme of his lately. The List in Review Here are some comments from Applegate on the Uncommon Values roster: America Online (AOL:NYSE): "They are the world's dominant Internet brand," says Applegate. Lehman expects AOL to make inroads in broadband and to be the premier name in Internet retailing. AT&T (T:NYSE): "The company is successfully recreating itself from a distance carrier to a leader in voice and data." It is also increasing their global reach. Ford (F:NYSE): "Ford is in the process of retooling itself so it can continue to deliver and stable earnings." Its luxury car brands -- Jaguar, Volvo -- should drive earnings. Also, the company will probably spin off its parts division within the next few years. Firstar (FSR:NYSE): The 13th-largest regional bank holding in the U.S., last year Firstar "surpassed everyone's expectations realizing the cost savings of the Star Bank merger." This year, Firstar should do the same with its Mercantile Bancorp (MTC:NYSE) acquisition. General Instrument (GIC:NYSE): "Set-top orders should continue to accelerate and the company is also working to develop IP-based technology." Furthermore, General Instrument has some stock gains on its balance sheet that are not fully reflected in its price today. Intel (INTC:Nasdaq): The sector's coming off some tough times, the company's moving into new businesses and, with Natioinal Semiconductor's (NSM:NYSE) exit from the space, there's "shrinking competition." KLA-Tencor (KLAC:Nasdaq): "These guys are the dominant global suppliers of inspection and testing equipment for the semiconductor industry." As chipmakers move to 0.25 micron and copper processing, orders should flow in. Eli Lilly (LLY:NYSE): "It's gotten down to where it's trading at a market multiple," as the whole drug sector took lumps. "You've had some concerns about competition to Prozac," but the market is failing to recognize that the company's product pipeline looks good. Microsoft (MSFT:Nasdaq): "While antitrust and other worries are going to hang on the stock, we still think they'll be able to maintain their 25% growth rate." And don't forget Windows 2000 -- a "$40 billion product." Tyco (TYC:NYSE): "Tyco is somewhat unusual in today's world because it's one of the few conglomerates out there. We liken it to GE (GE:NYSE) -- they've been very smart at growing through accretive acquisitions. They should be able to get earnings growth up to the 20% to 25% range

To: JohnG who wrote (33966)	7/2/1999 11:53:00 PM
From: Ruffian	Respond to of 152472

JohnG, Good response. I feel that is a "Euro_US Thing". As Gilder said the "Euros, (mentioning ericy) sat down for a Dinner of Crow". Beware when it doesn't taste like MD! MP

To: JohnG who wrote (33966)	7/3/1999 9:13:00 AM
From: Mike Buckley	Respond to of 152472

Depriving someone or their property is a matter of legal due process and not a matter of a majority vote of those who would love to acquire your property for little or nothing. I think it's fascinating that some people have the view that Qualcomm doesn't have proprietary control, while at the same time all the customers are sitting around a table trying to tell Qualcomm how much (or how little) the Q can charge for use of its product. As I mentioned in a post in the G&K thread a month or so ago, this is a clear case of the "have's" and the "have not's." Q has it and the others don't. --Mike Buckley

To: JohnG who wrote (33966)	7/3/1999 6:25:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 152472

Fair 3G Royalties <"Fair" royalties for IPR depends on whether you are IPR rich or poor. The nature of property is that it is yours to have, hold, and use to your benefit. Depriving someone or their property is a matter of legal due process and not a matter of a majority vote of those who would love to acquire your property for little or nothing> Excellent rant John. I can quit if you keep this up and Ramsey keeps up the political stuff on China. Still they are talking about 5% as though it is some 'right' figure. How about 'what the market will bear'? This CDMA stuff is amazing, nobody else could breach the laws of physics. Q! people did it. Now, they deserve the full extorquerationate payment they have earned. 15% sounds more 'right' to me. R&D, creativity and a life's work should not treated with derision by offering a meagre 5% total for all IPR to make 3G work. Let's just forget it all. Stick with cdma2000. NTT can go with Ericy's VW40 version called W-CDMA, which at present drives around in the back of a truck and might or might not be ready in a real, working version which fits into a small, WWeb device before NTT DoCoMo loses all the Japanese subscribers to cdmaOne which is a wild success in Japan. The 3G negotiators in all the many bureaucratic bodies can get real jobs and let the market decide. They all claim to be in favour of 'letting the market decide'. Mqurice

To: JohnG who wrote (33966)	7/5/1999 6:30:00 PM
From: Jim Willie CB	Respond to of 152472

as Gilder says "govt is a dog's best friend" this cap on IPR and patents sounds like European socialist bullshit... they are losing the IPR game in telecom to the dominators and dominatrixes, whose residence happens to be in the USA... tells me some VERY big money is coming our way in royalties... BIGTIME stakes involved, and theQ is eats first at this table... ever see what is left after a lion eats??? (NOT MUCH) Europe can take its socialism and stick it where the sun dont shine... those guys learned nothing since WW2 about the inexorable consequence of socialist measures: stifled growth, hindered opportunity, squandered wealth while you're at it, Uncle Sam... I'd like a very cheap campsite on the plush Hamptons on Long Island... I realize it is private property, but let's put a cap on the rental royalties can you imagine any company pouring money into R&D when a cap exists on patent royalties??? negatory, jim