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

To: Douglas Johnson who wrote (5849)	1/25/1999 9:44:00 PM
From: Zoltan!	Read Replies (1) \| Respond to of 21876

I received it as a client but the report achieved widespread distribution. Try the DLJ site. The report was authored by Stephen G. Koffler. Key points of the report: 1) Cisco's growth and earnings reliability has become almost legend, and is very rare among large cap technology companies. Scarcity value alone helps to explain the multiple. 2) Due to the company's dominance of data networking, Cisco is arguably the best positioned company to benefit from the convergence of voice and data networks. A relevant excerpt: ... Cisco's top line growth rate will far exceed Lucent's over the coming three or four years, and Cisco will be gaining market share in some of Lucent's traditional core markets. Thus, while Lucent may have the ability to exceed earnings estimates more than Cisco due to expense control, we believe that he market will pay a premium for Cisco's higher top line growth. At these levels Cisco is trading at roughly the same P/E as Microsoft. Clearly Microsoft is a more profitable company than Cisco, and might even be one of the rare cases of a dominance position in its markets even stronger than Cisco's. However, we think that Cisco faces less regulatory risk than Microsoft does and that these factors tend to balance each other out..... Cisco is cheap! Hmmmm. MediaOne. We use that in Naples.