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To: SecularBull who wrote (7031)	10/10/2000 8:27:21 PM
From: Jill	Read Replies (1) \| Respond to of 65232

Morningstar.com Lucent Bombshell Hits 700 Funds By Frank W. Stanton Another earnings warning? Please, say it ain't so! Today's gloomy earnings announcement came from struggling telecom- equipment concern Lucent Technologies (NYSE: LU - news), which shed 25% of its market value in after-hours trading. More than 700 funds own a piece of Lucent, so the news will almost certainly turn into a throbbing migraine for millions of mutual-fund shareholders. Shareholders in funds like Schwab Communications Focus (Nasdaq: SWCFX - news), which owns more than 48 million shares of Lucent, over 6% of its assets, will probably feel more pain than others. To see which funds might get hit the hardest, we screened for the five with the biggest exposure to Lucent, and list them below. Lucent has been trying to play catch-up with its archrival Nortel Networks (NYSE: NT - news), but it hasn't been able to close the gap. The market has reacted by punishing Lucent's shares; even before today's earnings warnings, its stock had fallen more than 60% off its 52-week high of $78.83. Nortel's lead stems mainly from its dominance in the lucrative field of optical-networking equipment. With its efficient production facilities, Nortel is the low-cost producer, whereas Lucent has experienced numerous manufacturing problems. Morningstar.com analyst Jay Ritter thinks Lucent may remain down in the dumps for some time, as Nortel is unlikely to lose its manufacturing edge any time soon. After a series of earnings warnings, Ritter says the company's management faces serious credibility problems, so it might take the removal of the firm's COE, Rich McGinn, to give the company's stock a boost.