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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Catcher who wrote (37772)	2/13/2000 12:29:00 AM
From: taxman	Read Replies (1) \| Respond to of 74651

these guys like lucent over cisco at these prices. i would tend to disagree. what do the rest of you think? regards --- The Bull Market Report > 5. MICROSOFT TAKES STAKE IN HOME NETWORKING > COMPANY > > Microsoft (MSFT, $100) said it would take an > equity stake in Itran > Communications Ltd., which makes hardware and > software that allows the > transmission of data through home power lines. > The deal moves Microsoft > further into the home networking market, which > involves linking multiple > personal computers within the home plus > connecting so-called "smart" > appliances, such as refrigerators and microwave > ovens that feature Web > access. > > COMMENT: We print this to bring to your > attention the continued push into > the new Home Networking business from the > biggest hi-tech firms in the > world. Echelon (ELON, $44), who we love so > much, has partnered with Cisco > Systems, Toshiba, GTE (GTE, $67), Honeywell > (HON, $42), Nippon Telephone > and Sun Microsystems (SUNW, $94). Good > partners are key and good > competition from Microsoft never hurts a market > either. > > > ================================================= > ================================================= > > > 6. CISCO EARNINGS BEAT ESTIMATES AGAIN > > Cisco Systems (CSCO, $131) reported that fiscal > second-quarter profit rose > 49 percent as the world's biggest maker of gear > that powers the Internet > sold more equipment to telecommunications > companies. The company also set > a 2-for-1 stock split, its ninth since first > selling shares to the public > in February 1990. For the period ended Jan. > 29, it had net income of $906 > million, or 25 cents per share, an increase > from $609 million, or 17 cents > per share, a year ago. Sales rose 53 percent > to $4.35 billion from $2.85 > billion, better than the 41 percent rise > expected by most analysts. Cisco > beat analyst forecasts of 24 cents a share. > While sales of routers and > switches to big businesses, which accounts for > half its sales, have slowed > from their historical 30-percent growth rate, > sales to telecommunications > firms have been soaring, rising 75 percent or > more. > > COMMENT: Very strong earnings from a very > strong company. The only > negative we can come up with is the high PE. > If you extrapolate the 25 > cents out for a year, you are looking at a > company at 130 times year 2000 > earnings. This is high, high, high. BUT, put > it in perspective. What is > Amazon's PE? [Infinity.] What is AOL's? > [148] Now, here's a better > question. What is Lucent's (LU) PE? [And the > answer is.. 80.] Our > take? If we had a CHOICE, we would be buying > Lucent at $53 over Cisco all > day long. More on Lucent below . We LOVE LU > at this price. > > BTW, the Cisco stock split will take effect on > March 22 > > John Chambers for President! > > 7. LUCENT'S BELL LABS DEVELOPS NEXT-GENERATION > "ENGINES" > > Researchers at Lucent Technologies' Bell Labs > have developed a new > approach to building the signal processing > "engines" that will be required > in tomorrow's performance-hungry communications > networks. The Bell Labs > approach, called Daytona, allows multiple > digital signal processors (DSPs) > to be integrated on a single silicon chip to > provide up to 16 times faster > processing than conventional DSP chips. > > COMMENT: We have said it before and we will > say it again: Lucent (LU, > $53) is a long-term steal at these prices. > They are innovation > personified, and innovation still remains at > the heart of the New Economy. > We IMPLORE you to take a hard look at Lucent at > these prices. Down from a > high of $84 in December because of an off > quarter, we predict that Lucent > will touch new highs some time this year. >