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

To: Ben Antanaitis who wrote (3926)	9/4/1998 11:05:00 PM
From: Lou S.	Respond to of 21876

check this post from CSCO board If this hasn't been posted: Dow Jones Newswires -- September 3, 1998 Analyst:Equipment Makers Best Investments In Telecom Sector NEW YORK (Dow Jones)--The best telecommunications companies are focusing on data transmission, according to Rod Berry, a technology analyst for the Robertson Stephens Information Age Fund. In an interview with CNBC Thursday, Berry said he likes Cisco Systems Inc. (CSCO), a company pushing its way into the telecommunications equipment market, which could offer huge money-making opportunities. He said the company already has made "key wins" in that market, signing deals to provide equipment to Sprint Corp. (FON) and Frontier Corp. (FRO). With Cisco shares trading about 12% below their 52-week high, Berry noted, they are a bargain. The analyst recommended Lucent Technologies Inc. (LU) stock, currently trading at about 30% off its high. Berry called the company "the incumbent equipment provider in the developed world." He expects Lucent to soon move into the data equipment business by fishing for a high-profile acquisition. Additionally, Berry likes BCE Inc. (BCE) unit Northern Telecom Ltd. (NT), the Toronto telecommunications equipment maker, chiefly because it has been successful selling products to deregulated local exchange markets in the U.S. Berry also suggested WorldCom Inc. (WCOM), explaining that when the carrier finishes buying MCI Communications Corp. (MCIC), data traffic business will account for 28% of its revenue. According to Berry, data traffic has surpassed voice traffic in terms of volume. "That's where the real growth is going forward," he said. interactive.wsj.com

To: Ben Antanaitis who wrote (3926)	9/5/1998 1:39:00 AM
From: ed	Read Replies (1) \| Respond to of 21876

Your Max Pain Option analysis is meaningless, you are just wasting your time. Why ? The ratio of open interest of call to put is a dynamic factor and is changing every day, so the max pain price will be changing everyday, But the option expiration day is fixed, i.e the third friday of every month. Only the max pain price of the third thursday of the month is meaningful to the investors, because we assume the open interest ratio of call to put will not change too much due to the option expiration date is very close, and if your prediction is correct, then the investors may use that information to make some money at the option expiration date. Unfortunately, the prediction is most likely not accurate , so there will be big divergence between the close price and the max pain price at the option expiration date. And that is the reason why you are wasting your time. Your max pain price of today is meaningless, because the ratio of interest of put to call will be changed tomorrow, and your max pain price will be changed again accordingly !!!!!