21 Quotes by Michael Ching

We believe that most of the issues impacting Lucent's September quarter results are company specific. Even increasing bad debt reserves because of emerging service provider credit concerns reflects Lucent's aggressive policy towards providing vendor financing.

We spoke to Cisco last night, and we do not think there is any change in its business. We believe the factors impacting Intel's results are largely immaterial to Cisco. Cisco has a very modest exposure of revenues to Europe.

We believe that even with the stock opening down significantly, the stock will probably be overvalued.

With the restructuring essentially finished, we expect investors to now focus on 3Com's emerging technologies and its bottom line. We continue to look for the company to report a breakeven fourth quarter, although earnings per share could turn positive in the second quarter due to non-operating gains.

The fact is that Next Level's management has no indication as to whether Qwest will actually slow down VDSL deployment. We do not believe that there will be any upside to next year's numbers from Qwest and, in fact, there may be some downside.

Lucent has run up recently on media discussion of being a take-over target. We believe that in the current environment, this is a possibility.

Given the uncertainty on both service provider and corporate IT spending, visibility is the poorest in several years. We expect Cisco to be cautious on its near-term outlook despite indications that business in some segments has improved.

We expect to maintain our estimates at $1.05 a share for 2000 and $1.43 for 2001, so Motorola remains the most attractively valued stock in our universe, at 23 times 2001 EPS estimates.

Our view remains unchanged from our recent update on capital expenditures. We believe that in 2001 cap-ex will be up approximately 10 percent. We continue to forecast 17-18 percent industry growth in 2001. We expect the stocks to remain under pressure over the next few weeks as investors digest capital spending plans from carriers.