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

To: KevRupert who wrote (15852)	8/27/2000 9:15:27 PM
From: Georgeb	Read Replies (1) \| Respond to of 21876

Earnings rate of growth is crucial as you said. Using the simple proportions we used for Avaya we get $5.74-$6.15 per share for Microelectronics. This is in the same ballpark as Avaya, clearly not a good way to value the stock since Avaya grows at 10% and Microelectronics grows at better than 35%. We know that Wall Street figures NT is worth 4 times LU because NT does 35% earnings growth. Can we multiply the Microelectronics price range by 4: to about $24 per share? What do you think? Regards, George