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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Zoltan! who wrote (8947)	7/30/1999 3:51:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 21876

Then I suggest that you stop touting PEG. I think you miss the point. Historic earnings are much more subject to distortion because distinctions are not made between operating results and non-operating issues. Prospective estimates do not include M&A costs and charges -- they are on-going business estimates. For example, technology companies have taken a lot of write-offs for IPR&D (this practice is finally under close scrutiny by the SEC). These expenses are not amortized as goodwill and promptly forgotten as "one-time" costs by analysts. I believe that YPEG numbers are very useful on a relative valuation basis (when normalized for the market and the beta of the stock). TTFN, CTC