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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: aladin who wrote (11086)	12/18/1997 7:38:00 PM
From: Marcel	Read Replies (1) \| Respond to of 77400

<<Lucent has a P/E of 90 and everyone likes them. Why is 45 so bad?>> The P/E's that matter are forward looking :) Regards

To: aladin who wrote (11086)	12/19/1997 5:08:00 PM
From: Greg Jung	Respond to of 77400

LU .vs. Csco >>"Lucent has a PE of 90" LU's PE never has printed right on Yahoo, they earned somewhere in the $2-3 range last year so current PE maybe is 25-30. Charges, etc. I suppose - a very complex financial picture most probably, complete with pension and pollution obligations that are off-budget and uncertain, in my mind anyway. Expect LT 10-15% growth, max and yes it is overpriced but what does that matter, for some it is the theme that counts. Price "targets" are also based on a wish and a reading of all the other wishes. Lucent has a lot of low-margin sales and greater diversification so I'd expect its earnings to be more robust than Cisco, certainly. As long as the stock price holds or rises nobody will question a high PE - only on the way down will the tune change to "what was I thinking?". Greg