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Technology Stocks : Corning Incorporated (GLW) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (631)	7/1/2000 5:33:50 PM
From: jack bittner	Read Replies (3) \| Respond to of 2260

MM, <While this certainly allows NT to go after very large projects, it also alters their capital structure considerably. Being in the financing business is not the same as being in the technology business. This creates a different set of risks for the investor, and lowers the aggregate PE.> NT sells this financing paper to banks without recourse, so it doesn't affect their capital structure. they have the financial muscle to generate the paper, and that's what no one else but lucent can do. but again lu doesn't have the experience, proprietary knowledge that NT has now accumulated by having built 85% of the 10gig networks. the combination of financial muscle and installation experience makes NT unique. <If you take your argument about commoditization to the logical extreme, then the entire telecom equipment business is in danger--not just component suppliers. Why? If components are just commodities, then systems will become commodities, too (after all).> A skilled builder uses hammers and nails which are commodities. His skill and experience can't be turned out on a lathe. No one can duplicate the extraordinary team of engineers and scientists NT has put together for high speed long haul installations. Right now, it also takes high skill to produce optical components, so SDLI rolls along on that. That used to be so for hard drive memories which are now commodities. I think that when components are produced in greater quantities and cheaper, that'll benefit NT and hurt the component makers. And I think when NT's Qtera group perfects solitonic transmission, a huge chunk of components will be obsolete. SDLI is a super outfit with great scientists, but I think 500x earnings doesn't cover these imponderables. But, MM, you know a good deal more about this field than I do. When you write "irony of ironies" I take it you mean I have no idea how much more glw is at the heart of the technology than is nt, or anyone else. I've been listing what I think is the great prowess of NT. Would you do the same for me about glw? I know they make about half the fiber, that their LEAF is advanced over the fiber of lu, that they've gathered a great group of optical engineers and scientists; that their new screens are quite advanced. can you tell me more? jack