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

To: Kenneth E. Phillipps who wrote (9325)	8/28/1999 8:59:00 AM
From: Zoltan!	Read Replies (1) \| Respond to of 21876

...There are two significant advantages to this strategy. The first is related to Cisco's recent decision to invest $1 billion in KPMG's consulting business instead of purchasing International Network Services as Lucent did. Chambers said that he'd rather make a $1 billion investment providing access to 4,000 consultants from KPMG than spend $3.7 billion for about 2,000 INS consultants while incurring other ongoing costs as well. The second advantage of partnering with KPMG is that it enables Cisco to focus on its own core competencies in data networking. Cisco competitors such as Lucent (NYSE: LU) and Nortel Networks (NYSE: NT) are what Chambers likes to refer to as "old world companies." These companies expand their businesses vertically rather than horizontally. This is generally more costly as new knowledge must be created. These costs drive down profit margins and can also lead to increased debt levels.... fool.com fool.com

To: Kenneth E. Phillipps who wrote (9325)	8/28/1999 10:56:00 PM
From: Anonymous	Read Replies (1) \| Respond to of 21876

"Wall Street heard Chambers? war cry. Lucent dropped $1.88 a share, or 2.7%, to close at $66.38 a share while Nortel skidded 4.5% to $43.94, and Tellabs lost 5.5% to end Thursday at $62.56. Chambers? bold move is perhaps premature since Cisco still has some gaping holes in its bid to go after the transport equipment market." I guess LUCENT, Nortel, Tellabs and just about anybody else is finished...might as well sell everything on Monday. Anonymous