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Technology Stocks : Alcatel Telecom (ALA) -- Ignore unavailable to you. Want to Upgrade?

To: cgraham who wrote (203)	9/19/1998 10:53:00 AM
From: Yeadon	Read Replies (2) \| Respond to of 285

Given their problems in Europe, it is now understandable why they were willing to pay such a premium for DSC. They wanted better access to the US market because they knew (for much longer than Serge admits) that Europe telcos would be slowing down. And that is the basic idea behind the lawsuits. Also, a key issue is: are the Euro telcos slowing down spending in general or just for the types of products ALA sells? From what I can tell from a few newswires, here are some revised estimates: 1998 $.99-1.06 1999 $1.27-1.35 2000 $1.84-1.87 Note that they are still profitable. They were hit as if they were losing money. Remember, DSC fell to about 16 or 17 and they were posting big losses and return to profitability at the time was not clear. So decline is way overdone. But ALA could still fall farther as institutions continue to dump the stock. Yeadon