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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (3091)	7/28/1999 9:45:00 AM
From: Kenneth E. Phillipps	Respond to of 14638

Bosco - Thank you for your comments. I would like to add that today's announcement from Level3 leaves no doubt as to who is the leader in fiber optic networking. The leader is Nortel. Both QWest and Level3 have now chosen Nortel over Lucent for their DWDM technology. Fiber optic networking is the future of networking. The future belongs to Nortel. Nortel opened this morning at 86 15/16. Ken

To: Bosco who wrote (3091)	7/28/1999 10:40:00 AM
From: Mr.Fun	Read Replies (3) \| Respond to of 14638

Friends, let's set up the question: 1. P/Es based on CY2000 estimates - NT = ~30, LU = ~40, CSCO = ~60 2. Projected 2000 revenue growth rates based on sell side estimates - NT = ~17%, LU = ~20%, CSCO = ~30% 3. Projected CY2000 EPS growth rates - NT = ~21%, LU = ~26%, CSCO = ~25% 4. PE/EPS growth rate - NT = ~1.4, LU = ~1.5, CSCO = ~2.4 5. Balance this with your own opinion as to the risk related to each of these companies. FWIW I would rate LU least risky, NT next and Cisco most risky BWDIK My conclusion - I think both NT and LU should close the gap with CSCO, NT should get a little closer to LU, but LU deserves a premium. The only real issue is whether the gap with CSCO narrows because NT and LU valuations rise or because CSCO valuation falls,or both. If you like NT better here than LU, I can understand but I don't agree.