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

To: Tech Bull who wrote (11825)	12/22/1999 10:11:00 AM
From: Techplayer	Respond to of 21876

tech bull, LU is not warning. It is some moron named Geiling from JP Morgan. For Christmas, I hope he fries. Brian FOCUS-Lucent shares off after cautious comments December 21, 1999 05:07 PM Eastern Time (Adds Lucent comment in paragraph 8, fresh analysts comments in paragraphs 10-13, closing stock prices) NEW YORK, Dec 21 (Reuters) - Shares of Lucent Technologies Inc. LU fell 4 percent on Tuesday, bucking broad strength in the telecommunications equipment sector, after a brokerage firm expressed caution about growth prospects, analysts said. The stock sank to an intraday low of 79-5/8 before rebounding to end down 3-6/16 to 79-15/16 on the New York Stock Exchange. Shares of Lucent, the world's largest maker of telecommunications equipment, have gained about 45 percent so far this year. Analysts cited comments by J.P. Morgan Securities analyst Greg Geiling for the stock's weakness. Geiling said in a research report that he expects Lucent's revenues to be $11.2 billion in the fiscal first-quarter, ending in December, 15 percent higher than the year-ago quarter. But after adjusting for Lucent's revenue shortfall a year ago, caused by trouble in completing certain contracts, total revenue would represent core growth of 6 to 8 percent, the report said. That would be well below Lucent's growth of 23 percent in the prior September quarter and below estimated growth of 18 to 20 percent for fiscal 2000, the report said. Geiling said analysts will focus on the guidance that Lucent provides for its March revenue growth. J.P. Morgan recommended that investors take an "overweight" position in Cisco Systems Inc CSCO . and Nortel Networks Corp CA:NT NT until Lucent's outlook becomes more clear. Analysts expect Lucent to earn 54 cents a share in the first quarter, compared with 49 cents a year ago, according to research firm First Call/Thomson Financial. Lucent declined to comment on its revenue and earnings expectations. In July, Lucent's stock fell on concerns about the first fiscal quarter. Lucent had been working to distribute its sales throughout the year instead of having the bulk of its business reported in the quarter. Smoothing out those business cycles, while positive over the long term, had worried investors at that time, analysts said. Other analysts said they disagreed with J.P. Morgan's caution over Lucent's sales growth, saying there was too much focus on Lucent's $800 million revenue shortfall last year and its affect on this year's comparisons. Lucent's strength in wireless, optical, data networking and microelectronics will more than offset its stagnant sales to corporations, analysts said. "There's so much good going on at Lucent and so much upside, that all this picking around this quarter and whether you stick $800 million in this quarter or another quarter is missing the forest for the trees," said Paul Sagawa, an analyst with Sanford Bernstein. Other analysts said the discussion over Lucent's December quarter was old news and should not affect investors' long-term decisions about the stock.