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

To: polarisnh who wrote (10907)	11/7/1999 11:58:00 PM
From: A. Edwards	Read Replies (2) \| Respond to of 21876

PSI TECH CONFERENCE HIGHLIGHTS:THE STRONG MOMENTUM OF CARRIER SPENDING Prudential Securities November 5, 1999 Subject: Telecommunications Equipment Luke T. Szymczak (212) 778-4789 Wendy M. Liu (212) 778-1522 Tim Daubenspeck (212) 778-4790 * Network builds in the U.S. should remain robust over the coming quarters. * Major equipment companies, such as Lucent and Nortel remain very well positioned to benefit from this trend, and all things being equal, their ability to integrate systems and services give them an advantage over competitors. * The opportunities for small, upstarts with revolutionary technologies-- either in terms of functionality or cost--should remain high for those that execute well. Carriers may become more active in the nurturing and financing of these companies. * We find a high degree of enthusiasm for higher-speed alternatives to Cisco's GSR carrier-class router, but excluding Juniper, alternatives are in the testing/trial phase. The advantage promised by Lucent and Nortel is a tighter linkage of optical functionality with routing, which suggests Cisco should move quickly to enhance its optical capabilities. * The robust demand environment is likely to remain a catalyst for the equipment stocks, particularly Nortel given the hot product cycle it has in optical right now. However, Lucent's relatively low P/E--44 times vs. 60 times range (in US GAAP) for Nortel on a fwd-four-quarter basis--represents opportunity for those with a 12 to 18 month time horizon. * Analyst meetings next week should be positive: Nortel in New York City on Wednesday, Nov. 10, Lucent in New Jersey on Thursday, Nov 11.