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

To: Bosco who wrote (3095)	7/28/1999 11:09:00 AM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 14638

The market has voted on the recent quarterly results of NT and LU. Before the recent correction, LU had a high of 79 and NT a high of 94 - a spread of 15 points. Right now, the spread between LU and NT is more than 22 points. Investors are much more impressed with the NT results than the LU results. Ken

To: Bosco who wrote (3095)	7/28/1999 11:44:00 AM
From: Mr.Fun	Read Replies (2) \| Respond to of 14638

For Ken - I'm using $25,000M for 2000 revs and $2.75 for EPS (current consensus is $2.68 but I'm sure it will come up. BTW, the same is true for LU, consensus for 2000 will come up. If you don't like my #s, change them to your taste. For Bosco - NT is not treated the same as LU. It used to be treated much worse. For a long time NT showed little regard for shareholders not named BCE. Furthermore, you should have been in the room during the analyst conference fiasco last year. The Bay transaction was unfairly trashed - I really liked Bay before the deal and feel it will be an important asset for NT in the future. However, NT's recent run into the 90's is ample evidence that the street doesn't discriminate against NT. Meanwhile, LU has been hammered after earnings that were, IMHO, more impressive than NT's. Answers to your questions: #'s for LU do include ASND, or at least they should - I'm sure some lazy analyst out there hasn't updated his model yet. The loss of Carly Fiorina will be felt, but not in the results - LU has a very deep management team. Finally, NT and LU are unlikely to merge given a) competitive animosity, b)complete product overlap, c)DOJ objections.