Lucent,Nortel,Alcatel

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<HTML>these three companies are the giant in traditional telecom.
Now they all have trouble, but situations are totally different.

1.Lucent's stock dropped from $80 since 1998, and now only $6.xx. But it's recovering. It got back the biggest market share of optical from Nortel. And it 's announced gain date is 2003. we hope so. And the stock price is pretty stable now. The lowest price appeared 2 months ago, $5.00-$4.98. But it bounced up quickly. If you have some money, when it went down to $5.20 or lower , it will be a good point to purchase some.

2.Nortel. A totally Nightmare. Don't touch it. Because 2001 is just its beginning point. Company like that big could not recover soon(just like Lucent, it took it around 4 years). We don't know if government will save it when it went down more. I think the price still has some margin to drop. And even it does not drop any more, in near future, it would not come up.

3.Alcatel. Not sure about it's future. But one thing is sure. It's major market is not in North America. And another thing is better than the Nortel and Lucent. It has a much better CEO. From the analysis, Lucent and Nortel's trouble are bother because they would put 60% scale increase if the gain had already increased by 60%. But Alcatel was also increasing rapidly in the past years, and it did not expand itself so much. It would spin off some low income divisions as well as expand high forcast divisions. So it kept itself focused on some main point instead of losing a lot of cash. The shortcoming of this company is it still can not occupy the biggest market in the world-north america, though they have hired the best people in the states.

Personal idea of these companies:
I have been working for Alcatel and Lucent in China.
I like Alcatel most. Though they are all like three old monsters. But if I had spare money now, I would buy some Lucent's stock. for both short-term or long-term. If you did some research in the past 10 months, you would find that buying lucent at around $5.2 and selling at around $6.2 or higher, you would have gain at least 50%.
So don't freak out or be scared by the huge drop. In each period, you can still get some money from the stock market.

Sawol</HTML>
 
<HTML>Just my opinions...

1) Lucent has good market share in optical/data network/ wireless/micro eletronics. However, so many companies are working in optical area. for example Nortel, Cisco(Cerent), ONI, Corning. It bought Terbit Grade Router(NX64000) product line. But weak market demand and major player(Cisco, Juniper, Avici) make it profitless. It spined off micro eletronics business (Agere). I am not familiar Lucent's future. Hence, I will not buy it in short term.


2) Nortel is strong in optical/data network/wirless. Balance market share and technology, it is good at optical transmission. Although it bought lots of useless companies, it owns good technologies in optical long hual and DWDM. In optical area, it may maintain current market share. It is said that Nortel will be a bit-mover company. Nortel failed to migrate Bay and utilized its technoliges and market share. When it bought Bay, Bay is big company. After some year, Foundry, Extreme, Juniper have better data products than Nortel. Nortel's Vasalar 15K/25K/OPC/TI project wasted its money but it can't enter carrier grade IP router market(Now it is controled by Cisco and Juniper). Its data access business(DSL modem, broadband aggregator-UE, Shasta) are terminated. Nortel ATM switch product has good market but ATM is not a future technology. In wireless, Nortel is a major player. I think Nortel wireless has same size as Lucent.
I will not buy Nortel unless I ensure its bluepicture is clear (optical network -long haul, metro, ASON or SAN)


3)Alcatel is strong in DSL business. But its ATM(newbridge) is not so impressive. Not sure if it owns good technologies in optical because it seldom buy start-up. I will not buy it.

4)Cisco. After Cisco buy Cerent, it becomes a player in otpical market. Cerent is a very good company and had the most innovation design which provided high port density. Cerent product plus Cisco existed technologies may earn big market share in metro optical network. Also, Cisco bought some long haul startup too.

5)Juniper. Some one said Juniper did everything right from it start. It is the second big player in ultra high end router market. Nortel/Erission/... are selling its product in data network or wireless network (for 3G). Very impressive. But it doesn't have access/enterprise product. The high end router market is still weak.

6)Nokia. Don't you think it is a good company? Its cell phone is popluar and stylish. Telecom carriers can't buy a big system every year. But pople can buy more than one cell phone.

I think following areas will be hot - metro optical, SAN, Auto switch optical network, carrier grade router, 10G ethernet.




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<HTML>Good points. I prefer option for safe play. LU APR 2002 7.5 CALL cost you only 105 every 100 shares,that's everything you could lose. However, the reward potential will be unlimited.</HTML>
 
<HTML>About Nortel,Lucent,Alcatel's Optical Market:

Actually, nortel's optical market share is not so good as we know.

Before 1999, I have never heard of Nortel's optical product in China. Lucent had 60% market share of SDH in China. And in north america, they have both good market share. And Lucent is always the leader in optical field, it is its strongpoint in history.

And Nortel's turning point is its 10G SDH/SONNET(TDM) product. Its DWDM product is not as good as Alcatel's. And Lucent did very good in SDH 2.5G and first generation WDM till 1999. I don't know why, since Wavestar 16/1, it has not provided a competitive product in this field. About NX64000, I think it is a good idea(very competitive to any IP vender), but Lucent always lost its chance because of leader's mistake.

Alcatel is a european company, it is as aggressive as lucent. But it has really good optical products. It has the biggest submarine optical system market share whose technology is more advanced than territorial optical system. Alcatel quotes technology in this field to territorial DWDM system. So far, for backbone DWDM system, these three companies are nearly the same in technology, maybe alcatel is better for just a little(personal opinion).

Nortel is no doubt advanced in 10G TDM system, even now. I think a lot of contracts are because of the 10G, not the DWDM.

About other companies' optical system:

Not sure about cisco, but one thing is clear: It is a monster. Because it has poor technology and poor products, but it has huge market share. It is always trying to get some carrier's market share from Lucent,Nortel,Alcatel. But I don't think aquiring some start-up company could help big in optical products. It was beginning its success from enterprise product, that is its limit.

Ciena is a good start-up company in DWDM system. It has biggest market share in optical switch market,though they don't have real optical switch. The high tech's crisis affected its development of MPLamdaSwitch. But we can clearly see the activity of it and another company(Juniper) in this times' crisis.(though not good now)

In the beginning of 2002, NASDAQ began to drop. Big companies like Lucent, Nortel...dropped sharply. So did CIENA and JUNIPER,they were both dropping to about $30, but there was a bounce up later. Nortel and Lucent... did not rise much, but CIENA and JUNIPER made a really impressive rise, to about $60. But now, everybody knows that it is not a short-term drop, it is a 2-5 years' slow down. Then these two companies also faced trouble in market development. This is why their prices are only around $10 now.

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<HTML>Sawol,

thank you for the information. At least, I know more about the optical market.</HTML>
 
very impressive, thanks for sharing

<HTML>fyi

Last week performance for stocks mentioned above:

Symbol open high low close volume
CSCO 12.05 15.03 11.15 14.94 563M
LU 5.75 6.57 5.60 6.49 101M
NT 5.47 5.77 4.9 5.45 82M
ACTL 17.9 18.1 15.54 17.06 1.3M
JNPR 9.64 15.13 9.19 15.08 124M
CIEN 10.02 13.1 9.2 12.49 94M</HTML>
 
RE: very impressive, thanks for sharing

<HTML>How much more? </HTML>
 
what do you mean?

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