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

To: Dakota Sullivan who wrote (2126)	4/7/1998 3:09:00 PM
From: Sawtooth	Respond to of 21876

<<Current valuation takes into account LU's dominance of emerging technologies via Bell Labs, leadership in existing technologies, global service and financial clout. For example, LU can fully finance a WDM deal for a client while Ciena can't. This is real value. $65 might be a little rich (60x forward earnings), but it's no worse than MSFT or PSFT with kindred growth potential.>> I agree, Dakota. The market is a big adjusting mechanism; always adjusting the price of each stock up and down; not static for very long. Interesting thing is the mechanism has a tendency to over adjust in both directions before returning to a state of relative equilibrium. I think we're seeing, and will continue to see, more of the same over the short term. ...Tim (How do you arrive at 60 X forward earnings at $65?)

To: Dakota Sullivan who wrote (2126)	4/7/1998 3:21:00 PM
From: RetiredNow	Respond to of 21876

Dakota, how can you say that LU has "kindred growth potential" to PSFT. PSFT has a much lower base of revenues and is growing at about 80%, whereas LU is projected to grow at 30% and has a much larger base of revenues. PSFT deserves a much higher PE than LU. Still, LU's good for the long term, though.