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

To: yard_man who wrote (4688)	10/16/1998 1:59:00 PM
From: Raptech	Respond to of 21876

Stock in Lucent Technologies (LU) and other telecom equipment firms started falling earlier this year. After rising over 115% from the beginning of 1998, Lucent dropped from its summer high of over $100 to below $60 earlier this month before recovering to $70. Dow Theory investor Rich Moroney attributes this to investor concern that pressure on several fronts could stall the industry's rapid growth. These pressures include phone company mergers, slowing capital spending on wireless infrastructure, and the financial problems of once-promising markets in Asia and Latin America. Moroney advises taking a closer look before discounting Lucent. "Firms that are gaining market share, like Lucent, are likely to fare better than rivals," he says. In fact, the firm expects to meet analyst estimates for a 44% EPS gain to $1.70 per share. Much of this is on increased sales of systems for network operators, business communication systems and microelectronic products. Lucent also enjoys continued demand for its products and services used for Internet services and data traffic. "Buying is best done gradually as these shares remain expensive and are likely to be under pressure until near- term prospects are more visible," Moroney says. He maintains an 'accumulate' recommendation.