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: Joseph Pareti who wrote (15243)	6/28/2000 8:01:00 AM
From: Georgeb	Respond to of 21876

June 13 - Terence Gabriel, stock market strategist at IDEAGlobal.com, said Tuesday: "Lucent will see big gains in the long haul. Lucent is a premier provider of telecom equipment. Of all areas of technology, the telecom area is expected to have the most money spent on it over the next 10 years. The internal inventory and product- management issues that negatively impacted Lucent in previous quarters are still a wild card, however. With strong support in the low 50s to mid 40s, and next-year earnings estimates of $1.55, it would appear that Lucent would be attractive on weakness toward support. Longer-term, I would expect a return to its $84 high, and then new highs from there." He doesn't consider the enterprise spinoff however. Without that division, LU's earning growth rate is magnified. Why wouldn't it then be valued just a little more like CSCO and NT? If PEG as a measure of relative valuation means anything, then LU should be at well over $100 after the spinoff. I would hope that we would see the $80's before September 30th. Apparently this will be a one-step spinoff where current shareholders get stock in the new company, additional value that should move the stock price pre-spinoff.