Cisco front-loaded several quarters of costs into one quarter in order to make its gross margins look better.

We expect the restructuring plan to provide ongoing cost savings and enable Lucent to break-even in fiscal Q1 2002.

Lucent has experienced some delay in executing its restructuring plan but [we] believe that the company is finally starting to feel a sense of urgency about its return to profitability.

In our opinion, companies that cannot sustain high revenue growth eventually see their premium erode over the sector. Although Cisco has succeeded in moving attention away from its lack of top-line growth to improved margins, we believe that investors are hardly attracted to a cost-cutting story.

We're not telling people to rush out and buy. We still see a gradual erosion of the multiple, a certain amount of disillusionment with management, a lag in earnings relative to the economic recovery and corporate spending. If people think we're turning positive on the stock, we're not.

It can be a growth story, but if you're experiencing a recession, it's still going to be the best performer.