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

To: Terry Lyon who wrote (3236)	7/22/1998 5:42:00 PM
From: Bill Monahan	Respond to of 21876

>>>>>Lucent announced loosing a record $230 million and everyone is buying.<<<< The buying is because of the record EPS without the one-time charges. Billions of contracts announced very frequently. I will add to my position again on dips. Good luck

To: Terry Lyon who wrote (3236)	7/22/1998 6:02:00 PM
From: ratan lal	Read Replies (1) \| Respond to of 21876

Lucent's market cap is around $130 billion, comparable to GNP for several countries, and they lost a record amount! $230 mil is peanuts. Do you know the budget deficit of most countries including the US ??

To: Terry Lyon who wrote (3236)	7/22/1998 7:30:00 PM
From: X Y Zebra	Read Replies (2) \| Respond to of 21876

Lucent's market cap is around $130 billion, comparable to GNP for several countries The above, and the fact that lakes have fresh water and oceans have salt water... are completely irrelevant to LU's stock price. However, future expectations of earnings, based on specific contracts, and use of technologies that LU can provide etc. etc. will affect the price. So long so that: 1. Expectations continue to be met. (by LU). 2. Growth in their markets, (and specifically LU's Share), continues to be strong. 3. Specific events relevant to Lucent, i.e. what can they do or not given their agreement with AT&T, will turn (soon), positive for LU. 4. General business environment (i.e. interest rates, and sentiment), continues to be favorable. 5. Demand for LU stock from the investing public (both retail and institutional), continues strong. 6. Continued influx of cash (in general), flowing into the stock market from domestic and foreign sources, remains at current or possible higher levels. Then, short of a considerable (and unforeseen), catastrophe that would modify or affect the above, the price of the stock will continue to rise. As for: Lucent announced loosing a record $230 million and everyone is buying. What is the reason for the loss ? I understand is due the cost of considerable acquisitions..... if such is the case, then what will be the marginal benefit of the acquired units/businesses, etc.? The key words are: EXPECTATIONS of FUTURE events. The first decision to make, prior to the above considerations, (for the individual), is to determine if one is an investor (medium to long term holding), or short term (speculator-day trader). Of course, one can always park money in cash at 3.5 %... per year, and "eliminate" all risk. Just another point of view. (which is exactly my opinion, no advice whatsoever, as I really have no idea what I am doing). Z. "The chief value of money lies in the fact that one lives in a world in which it is overestimated."