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

To: Mr.Fun who wrote (12559)	1/11/2000 10:00:00 AM
From: Kenneth E. Phillipps	Read Replies (3) \| Respond to of 21876

Mr Fun - I always appreciate your posts because they cause me to think. You make some excellent points. I agree with you that LU is undervalued relative to NT and Cisco at this time. I disagree with you on some points. 1. BTW I didn't notice NT making ANY significant acquisitions between June98 and June99. NT announced the Bay acquisition in June of 98 and closed on 9/1/98. If memory serves me correct, NT acquired Cambrian during this period. 2. For my money, LU is way, way ahead of NT in actually integrating data in their product line. I think the passage of time will prove you are wrong on this point. Open IP environment will be big. Versalar will be a huge success. Succession Platform will be more successful than LU product. You omit to mention one point. Nortel's lead in optical gives it a lead in network managment. You do not mention Nortel's entry in ASP where Lu has no presence. Nortel has deployed call waiting to MSN. Where is the competing LU product?

To: Mr.Fun who wrote (12559)	1/11/2000 10:24:00 AM
From: telecomguy	Respond to of 21876

3. Your assertion that LU has not made aggressive acquisitions is simply wrong. A modest amount of research would make this clear. BTW I didn't notice NT making ANY significant acquisitions between June98 and June99. NT was the first "old-world" vendor to make a MAJOR purchase in a major router company (Bay). When NT bought Bay, LU criticized the purchase as I recall for overpaying and then waited almost a year (if my memory serves me correct) and paid almost 3 times as much for Ascend confirming that NT was correct to make a major investment to jump-start their data division. Recently, NT has bought QTera and Csco has purchased Cerent --- two major purchases that will put LU further behind the hot Optical Networking market. It's possible that the Bell Labs are working on similar/better optics technology but considering that LU spends far more on R&D than NT and CSCO combined, it is perplexing that they are not capable of coming out with more industry-leading technology. Many of your points are valid ---- and yes NT was in trouble until Roth took over and shook up the company but that is EXACTLY my point. NT has already gone through the critical process of transforming itself without imploding. LU now has to show that it can do the same and just because NT was successful does NOT necessarily mean LU will also be successful (and this is where the top mgmt is so critical in turning a ship around, changing the corporate culture and instilling certain level of heightened urgency which I see lacking in the laid-back style of McGuinn). LU can go either way ---- down to $30 or back up to $80. The problem is I don't see the existing mgmt making major changes to this company required to put LU back in the pre-eminent position as the technology leader in the networking business.