2006-09-30 03:30:52 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
It made a low in July around $2, and is currently trading at $2.30
The stock is in an uptrend, and should be held until that uptrend is broken.
Look at a daily chart on Yahoo Finance and you will see the Uptrend.
It has been going sideways within a channel about 10 cents wide for the entire month of September. Depending on the direction of breakout from this channel would determine for me what to do.
If it breaks the $2.24 lows, I would sell. If it breaks the $2.35 highs, then I would hold onto it and let it run.
If it breaks out to the upside, it will run into resistance at $2.45 - $2.50. That doesn't mean it will reverse there, but it will pause there.
There are no predictions here. I merely try to determine what needs to be done if certain price points are reached.
If it were me, I would call my broker and tell him I want a Protective Stop to sell at $2.19, GTC.
That way, the downside is protected, and you let the market tell you when it is time to sell.
If Lucent rallies to $2.45, I would move my Stop to $2.35, because what used to be Resistance would then become Support. If it rallied to $2.60, move your stop to $2.50, and just keep trailing the price action with a Stop until you get stopped out.
2006-09-30 06:08:22 · answer #1 · answered by dredude52 6 · 1⤊ 0⤋
Lucent is merging with Alcatel (not Nortel as a previous answer said). The deal has been approved by the European regulators, but there are some other regulatory issues holding it up right now.
All the needed approves are expected to be given, and the deal should close in late 2006 or early 2007.
Shareholders of LU will receive stock in Alcatel when the merger is completed. Each share of LU is worth 0.1952 of Alcatel. That's about one share of Alcatel for 5 shares of LU.
Because of the merger, LU shares will track Alcatel shares, and are not likely to appreciate.
So the real question is: do you take the Alcatel shares, or sell now.
In my opinion, I think Alcatel is a weak company. I would sell the LU, and try to find a productive use for your capital.
2006-09-30 13:06:28 · answer #2 · answered by bookbyte 3 · 0⤊ 0⤋
Hold it right there. The stock is very low and it is not a good time to sell it. There is a possible merger with Nortell and when that happens you will reap a great reward. If it hits 3.00 take your money and run. Lucent is a roller coaster stock and it shoots up and down frequently. Telecom stocks are moving up quite well at this time and Lucent will come back up. I own Lucent stock......KECK
2006-09-30 10:37:49 · answer #3 · answered by Tneciter 3 · 0⤊ 1⤋
It somewhat depends on your tax situation. Do you have capital gains on which to offset the losses? If so take them. If not, you are in somewhat of a bind, since the government will only allow you to offset $3000 in earned income, but you can carry forward your losses for two additional years.
The company is not totally hopeless, but nearly so. Who knows? A miracle might happen.
2006-09-30 10:45:38 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I've got some too. I think just dumping them and going to the movies, maybe.
2006-09-30 10:32:09 · answer #5 · answered by holden 4 · 0⤊ 0⤋
Use them for toilet paper. Patty drove this company into the ground.
2006-09-30 11:32:49 · answer #6 · answered by Grandpa Shark 7 · 0⤊ 0⤋
Sell on strength.
2006-09-30 13:46:27 · answer #7 · answered by Man of Steel 3 · 0⤊ 0⤋