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

To: Techplayer who wrote (9137)	8/11/1999 10:11:00 AM
From: John Malloy	Respond to of 21876

Three days ago I posted (9073) my calculation that Lucent was worth $85 to an investor in the 28% federal and 6% state tax bracket who planned to hold Lucent for five years. The basic assumption was that this investor wanted a minimum return of 12% after taxes. He forecast that the growth of Lucent's equity/share would gradually slow from 34%/yr. today to 22 %/yr in five years, and that the price/book ratio would gradually fall from today's 15 to 9.8 over that period. Nothing has happened in the last three days to warrant changing those forecasts. That means everyone who accepts those forecasts and the 12% minimum after-tax return has the opportunity to buy a stock worth $85 for only $63. Doesn?t happen every day John Malloy