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To: Eddie Kim who wrote (45345)5/29/1998 12:32:00 PM
From: Paul Merriwether  Respond to of 176387
 
Eddie
Never followed LU. Heard that it was a great copany, well positioned but
"overpriced". Perhaps will start researching it sometime.
best...



To: Eddie Kim who wrote (45345)5/29/1998 1:05:00 PM
From: hitesh puri  Read Replies (1) | Respond to of 176387
 
> Why buy INTC when you can buy LU for the same price?
Depends on how you look at it. LU has all the good things priced into its lofty multiple yielding todays price where as INTC has all the negative things like FTC probe, Q2 earnings warning, PC glut etc. priced into its lower than S&P average PE of 18. So its risk/reward ratio is much better in the next 6-9 months. I never look for the next 6-9 hours as I think I would do better at Las Vegas in that case :-)

-hitesh



To: Eddie Kim who wrote (45345)5/29/1998 5:30:00 PM
From: Logos  Respond to of 176387
 
Re; Why buy INTC when you can buy LU for the same price?

Because Intel's PE is about one tenth of Lucent's. Of course, by the time the FTC and server makers get through with them, Intel's PE may be one fifteenth of Lucent's!

Haz