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Lucent Technologies

(LU)

plunged to a 52-week low of $20, down 30.3%, in morning trading after it issued another warning, this time saying that fourth-quarter earnings would fall well short of the Street's estimate and last year's results. Several analysts downgraded the stock, but

Goldman Sachs

said Lucent's valuation is low and advised its clients to hold on because the company is likely to outperform its peers as its microelectronics spinoff nears. Telecom equipment makers, network stocks and fiber optic companies fell in step, with

Sycamore Networks

(SCMR)

down 7%,

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JDS Uniphase

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Ciena

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dropping 0.6% and

Cisco Systems

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slipping 2%.