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

To: t36 who wrote (1818)	3/29/1998 10:26:00 AM
From: RetiredNow	Read Replies (2) \| Respond to of 21876

Sue, it depends on what you call growth. Lucent is projected to grow 32% in the current fiscal year. Do you think they deserve a PE of 30, maybe even 50? If you said yes, I would probably agree with you. But currently LU is trading at around a PE of 170. There is no way this valuation can hold up. When you talk about ignoring PE for growth companies, I'd say maybe, if they are in a dynamic field or growing industry like LU, but I would only ignore it up to a point. Then I'd take money off the table to protect my returns. And if you are long term holder, then don't take money off the table, just be careful when you buy in. Right now is definitely not the time to be buying LU. Wait a month.