Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: KYA27 who wrote (11104)	11/14/1999 1:11:00 PM
From: KYA27	Read Replies (2) \| Respond to of 21876

LU is a winner... by: wghtre3086 (30/M) 11/14/1999 1:00 pm EST Msg: 58116 of 58116 People need to stop worrying about who is better..LU or CSCO? They are both the big winners in this revolution and will continue to play an important role each in the development of the internet. After these last earnings announcements, neither had bad earnings...both were strong earnings reports. This is going to continue. In particular, LU investors must realize that all this negative press (at least a major portion of it) that has been coming out is coming from avid CSCO holders who are extremely nervous that LU is encroaching on CSCO, so they have to write bad press reports questioning LU's ability to thrive. That's a crock! LU is letting CSCO have it's way right now with the current technology. But LU is focusing on an upcoming "inflection point" in this revolution where Optical Networking is the new "thing." At that point, LU will have all the patented technology (and then some) necessary to lead this wave. CSCO will be finding it more difficult to compete without developing its own all optical router. Just this week LU announced a tremendous crown jewel innovation - increasing optical routing throughput using tiny mirrors...read here: biz.yahoo.com Whether people realize it or not...this is a BIG innovation in LU's favor. The dividends of this innovation are coming next year. CSCO is scrambling after this announcement by LU to find their own equally competing technology. I doubt they will have enough time to beat LU to the finish line on this. This will be a big, big money maker for LU and it will be the point of inflection where LU is now the leader in networking. Consider also a less relevant point. To CSCO's credit they have enjoyed lofty profit margins from their current products. LU, however, has higher costs associated with telecom equipment. But as voice and data merge and these two companies draw closer and closer to the center of this revolution, CSCO will have to absorb higher costs to gain the telecom angle and LU will expand their profit margins in the data networking arena. So from a purely finacial standpoint, it will appear that LU's margins are expanding and CSCO's will eventually shrink. A case in point is LU's already improving profit margins (see last earnings announement for details)..but keep in mind, they both will continue to make stellar earnings for years to come. And Nortel? They will always be considered a player, but not like LU and CSCO. So, if you own shares in either CSCO or LU, relax. They are both winners, but if I had to make a bet on the future...I'm laying my money on the table for LUCENT TECHNOLOGIES. Enjoy.