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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: larry pollock who wrote (3744)	1/25/2002 12:53:16 PM
From: larry pollock	Respond to of 3891

French Stocks Fall, Led by Alcatel; DMS, Generale Location Gain By Julie Hyman Paris, Jan. 25 (Bloomberg) -- French stocks fell, led by Alcatel SA after rival Ericsson AB, the biggest phone-equipment maker, reported a fourth-quarter loss and forecast a 32 percent decline in first-quarter sales. The benchmark CAC 40 Index shed 20.06 points, or 0.5 percent, to 4488.01, paring a three-day, 1.9 percent gain. The broader SBF 120 Index slipped 11.23 points, or 0.4 percent, to 3104.32. The following stocks are making significant gains or losses in French markets today. Stock symbols are in parentheses after the company names. Alcatel SA (CGE FP) fell 52 cents, or 3 percent, to 16.98 euros, leading declines on the CAC 40. Europe's No. 4 maker of telecommunications equipment declined after Ericsson said it lost 3.5 billion kronor ($330 million) in the fourth quarter and sales in the first three months of 2002 will be about 40 billion kronor from 58.5 million kronor in the last quarter of 2001. Diagnostic Medical Systems (DMS FP) jumped 1.80 euros, or 15 percent, to 13.80 euros. The maker of an apparatus used to diagnose osteoporosis said 2001 revenue rose 20 percent to 30 million euros. The company said it expects annual earnings before interest and taxes to more than quintuple. Dynaction SA (DYT FP) advanced 1 euro, or 3.9 percent, to 27 euros. The holding company of industrial manufacturers said it eliminated its educational-materials unit by selling MediaScience Enseignements Techniques. Financial terms weren't disclosed. Emme SA (EMME FP) added 60 cents, or 4.6 percent, to 13.80 euros. The software publisher said it had agreed to acquire the U.S. multimedia business of Dorling Kindersley Plc, a U.K. publisher that was acquired by Pearson Plc in 2000. The price was not disclosed. Emme said it would issue 3 million new shares to Pechel Industries, an investment company, to fund the acquisition. Generale Location SA (GLO FP) climbed 2.09 euros, or 13 percent, to 17.89. The provider of exhibition fixtures and services said it agreed to buy BS Vision, a French company specializing in hotel and boat fixtures. The price was not given. BS Vision is expected to have sales of 27 million euros in 2002. Stallergenes (GENP FP) rose 2.22 euros, or 12 percent, to 20.52. The provider of allergy treatments said fourth-quarter revenue gained 14 percent to 20.27 million euros. Access More Information and Services Above

To: larry pollock who wrote (3744)	1/26/2002 10:52:59 AM
From: zbyslaw owczarczyk	Read Replies (5) \| Respond to of 3891

Larry-- Right now due to slow capitol spending in telecom sector telecom, vendors are on the black list. By the second half of 2002 this situation will change, when new cycle of upgrade will come. Even Sagawa believe in such scenario. SI is industrial company. like GE. They are 3-rd grade telecom company, without optical portfolio, IP+ATM, poor fast internet access, 2-nd rate wireless (ALA is in wireless 2-nd rate too). Major portion of revenue comes from domestic customers and lots of gears are resell (like CSCO enterprise in Europe) with very low margins. Major customers like DT is shifting big accounts from SI to ALA , b/c SI lack of products (DT is building major broadband(date , voice, image etc.) network for wire and wireless exclusively on ALA, for example IP+ATM is heavily used in wireless. SI does not have migration path from old voice network to voice and data over packet. Large carriers are not going to write down old network anytime sson. Voice over IP+ATM saves tons of $, so do optical network. Wait when lots of TV content will trevel over optical network. This will eat capacity very quickly. ALA is call 4-th biggest phone company in Europe, despite fact that based on the last 4 quarters it is the biggest telecom vendor in the world. Just look at total revenue ( in US $). Handset products accounts for 3-4% of total revenue. In current Q, revenue is projected to be 10% up from Q3, and I did not hear any warning, did you? I expect Q1 to be historically down. It is like semi industry. When up cycle comes they outperform the rest. Even conservative analysts agree that over the next 5-6 year telecom spending will grow 12-14%. Leaders will grow faster. On the other hand industrial company will grow much less. SI is theh leader as an industrial company and big follower in telecom space. Have a Good weekend ZO P.S. you owe an explanation as to how and why you claim that "ALA will significantly outperform SI." I do not own anything to anybody. It is up to me to answer your question.