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

To: Bosco who wrote (3116)	7/29/1999 10:20:00 AM
From: Paul Lee	Read Replies (1) \| Respond to of 14638

Computers: Cisco, Lucent or Nortel: Which to Buy? Dave Sterman, Director of Online Research (7/29/99) For the last several years, investors have scratched their heads trying to decide whether to invest in Cisco Systems (NASDAQ:CSCO - news) or Lucent Technologies (NYSE:LU - news) . Cisco, which made its name in the field of data networks has been increasingly marching towards the world of telephone systems. At the same time, Lucent, which was born and bred in the telephone equipment niche has been sashaying over to the world of data networks. Based solely on the measure of sales growth, Cisco is the hands down winner. Over the last five years, sales have grown 67% annually. In that period, sales at Lucent have grown 11%. That's because data networks have grown at a rapid clip while spending on phone systems has been the result of systems upgrades. But Lucent, with $30 billion in sales in Fiscal 1998 is still nearly four times larger than Cisco. The takeaway message: Large phone networks are still spending big chunks of dough. Soon enough, though, the distinctions between voice and data networks will blur, making Lucent and Cisco truly comparable competitors. "Right now, those firms have only 10% overlap in terms of revenues," says CS First Boston's Jim Parmalee, adding that "that figure is sure to rise." And thanks to last year's acquisition of Bay Networks, Nortel (NYSE:NT - news) is emerging as a key competitor in the new voice/data world (Nortel conveniently slots halfway between the two others with $18 billion in sales last year). fnews.yahoo.com