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

To: BUYandHOLD who wrote (4676)	10/15/1998 6:25:00 PM
From: Ridi J	Respond to of 21876

< For starters profit margins are miniscule (compared to say CSCO). Growth rates, both for earnings and sales are AT BEST 20% that of CSCO. D/E ratio is 40% (CSCO is 0%) ROA and ROEs also are not that competitive for the industry leaders. I shall not even mention P/E ratios, lest I knock someone off a chair. Yet despite all this LU has outperformed the competition handily.> Ain't it great?! Stock prices always reflect anticipated value, never actual. LU's profit margins are growing, their cost containment talents are beginning to work, and there is still room to do better. The Internet is exploding, and LU has the 5ESS AnyMedia switch, THE benchmark worldwide, although they are by no means a "one trick pony." Their fiber tech, multiplexing tech, DSP tech, etc. are all tops in their field. The Philips project looks like a boner now, but who new gadget-loving Asia would implode? But hey, LU apparently has among the least Asia exposure of the big-time telecom/network guys. The P/E thing is meaningless out of context. It's like looking at a snapshot of an auto race. Who's pulling ahead, who's falling behind, who's standing still, who's lapping the competition... THAT'S what matters, not who has the best P/E right now. LU may or may not be the grand prize winner in the telecom race, but NO one can deny they're a contender. And dat's wot I tink about dat!