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

To: Haim R. Branisteanu who wrote (6339)	2/20/1999 7:20:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 21876

Haim, I think what you're saying is that NT, LU, and CSCO are overpriced... right? You can't honestly believe that CSCO is a maina stock akin to YHOO or EBAY??? Can you???? CSCO is in a market where there are distinct barriers to entry, they have signficant market share in a varity of segements (edge routers, core routers, lan switches, RAS/RAC, ATM, etc. etc..) and they are inventing new techologies for new markets daily....just like LU and NT. I agree that these stocks are overpriced based on the speculative nature of this market, but they are definitely not anything like YHOO or EBAY.... Simply compare the respective PE's.... OG

To: Haim R. Branisteanu who wrote (6339)	2/20/1999 7:33:00 PM
From: Bindusagar Reddy	Respond to of 21876

Haim, I agree that overall market especially S& P 500 itself is overvalued compared to historic valuations. MSFT, LU, CSCO are in a unique position as compared to other S&P 500 stocks. Their future is ahead of them. One more imp thing they have in common is HIGH BARRIERS TO ENTRY. This advantage alone I would pay 1.5-2 times premium. YHOO, AMZN, especially EBAY belong to TULIP mania category. They will eventually find their real price. These companies are trading at multiple of 30 on year 2010 earnings. For that matter even DELL is a blue chip-Tulip, because they do not sell anything that is unique to DELL. It is a commodity comp.BOX. They don't even make the box. They assemble the all the parts in a Box made by somebody else and SLAP a DELL label. I will not give more than 20 PE to DELL. You know LU will exist in 20 years, but the same thing can not be said about AMZN, EBAY and other TULIPS. That commands more premium in my valuation. In summary, every company deserves a diff. method of valuation based on the overall picture not on some numbers. Regards, BR