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To: Tim McCormick who wrote (3172)	4/2/1998 12:16:00 PM
From: dougjn	Read Replies (1) \| Respond to of 9236

Very useful link. In my view, its LU's connections to the RBOC's, i.e. their confidence in LU backed and implemented telecom standards that is significant. And that is VERY significant. Doug

To: Tim McCormick who wrote (3172)	4/2/1998 7:00:00 PM
From: flickerful	Read Replies (2) \| Respond to of 9236

note the last two paragraphs, in particular: ----------------------------------------------------------------------- Thursday April 2, 3:17 pm Eastern Time Lucent continues meteoric rise NEW YORK, April 2 (Reuters) - Shares of Lucent Technologies Inc. (LU - news) jumped six percent on Thursday in heavy trading, increasing year-to-date gains to nearly 75 percent. Lucent added 3-15/16 to 69-7/8 in the first day of trading after the company's two-for-one stock split became effective. ''There's not any one reason. I think there are a number of factors contributing to this rise,'' said Alex Cena, a telecommunications equipment analyst with Bear Stearns. Cena cited the stock split, a recent contract from Bell Atlantic Corp. (BEL - news) and a positive outlook for quarterly earnings for the continuing enthusiasm. ''Every few days there seems to be something positive,'' Cena said. On Monday, Bell Atlantic named Lucent as one of five equipment suppliers for a $1.5 billion project to upgrade the Baby Bell's network over the next five years. Lucent's share of the contract was about $400 to $500 million, Bell Atlantic said. Despite Lucent's strong gains over the past quarter, Morgan Stanley Dean Witter analyst Alkesh Shah said in a research report this week that he continues to rate the stock as an outperform. ''We believe excellant domestic and international revenue opportunities, improving margins and upside to estimates should move the stock to our target price'' of $75, Shah said in the report. Shah also said that PCS wireless spending by Lucent's customers does not appear to have slowed as previously expected but instead seems strong for the March quarter. Previously, concerns about a potential slowdown in PCS spending was seen as the biggest risk to Lucent's top line growth, but now such a slowdown is not expected until 1999, Shah said in the report. For the fiscal quarter ended March 31, analysts expect Lucent to earn $0.09 a share compared with $0.10 a share a year ago. Beyond the strong quarterly expectations, investors have a bullish outlook for Lucent's long-term prospects. The former equipment arm of AT&T Corp. (T - news) has a solid position in the phone market and is becoming an increasingly powerful player in the data and Internet markets, analysts said. Lucent stands to reap major benefit as telecommunications companies race to upgrade their networks to handle the increased demand for data services. ''If you listen, the telecom companies are talking about data, data, data. There's a lot of potential here,'' said one analyst who declined to be named. Later this year, Lucent may use acquisitions to leap-frog into a leading position in the data market, analysts said. Lucent could use its strong stock price as currency in an acquisition starting this fall, when the company concludes the two-year restriction against business combinations that would unravel the favorable tax-free spinoff from AT&T. ------------------------------------------------------------------------ Copyright c 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon See our Important Disclaimers and Legal Information. Questions or Comments?