The following research summary is for Lucent Technologies,Inc. (LU)

1. The projected growth of Lucent's earnings look good. EPS was .86 in

1998, EPS was estimated at 1.20 for 1999, and EPS estimate for 2000 is

1.55. There is EPS estimated growth year after year and 2000 EPS is above

the consensus EPS(1.51).(Merrill Lynch)

2. Some of their competitors are

Cisco, Nortel, AT$T, and AOL.

3. Lucent is positioned at 64/130 in telecommunication equipment. (CBS

Marketwatch). Also ,this year(Dec.99) LU grew 39.8%, while it's own

industry grew 13.10%, and the S&P grew 11.30%. (Bloomberg.com)

4. Some new products include innovated products in DSL and Cable modem

and remote access concentrator (RAC) products.(Merrill Lynch).

5. Much of Lucent's marketing strategy involves the rapid expansion of

international sales over domestic sales as 30% of revenues are from

international sales. (bloomberg.com)

6. This industry is growing very rapidly and is a "hot sector"

today. Wireless and fiber optics are up 20% as more phone companies build

networks to handle internet traffic and data. (Bloomberg.com)

7. The company's strengths are it's numerous acquisitions, one of which is

Ascend, that was acquired in June 99. With the acquisition of Ascend it

will be able to sell products that will deliver voice, data, and video

traffic on a single network. (Bloomberg.com) Other strengths may be their

venture sector which acquires many rapidly growing small businesses.

8. The company's weakness is relatively small US sales in comparison to

other companies in its sector. Some analysts have reported Lucent is also

carrying too much inventory and receivables on its balance sheet.

(Bloomberg.com)

9. Lucent has shown positive earnings surprises in quarters June 99,

March 99 Dec. 98 Sept.98, and June 98, but the greatest surprise was 14.29%

which is not a great indicator of explosive growth in the short term, so I

would rate Lucent an accumulate, long term buy .(Bloomberg.com)

10. One buy trigger is the acquisition of Ascend but one sell trigger may

be the increase in international sales as foreign countries economies may

be more volatile than the United States.