Mike --
I don't follow LU closely, but do know their microelectronics unit (set to be spun off) is their one bright spot. Before investing, I'd want to know how many people have left during what appears to be a "Long Days Journey Into Night." When a company's stock slips as badly as LU's, a negative cycled begins that's hard to stop: options go negative, people leave, stock drops further, more people leave, stock drops again, co. can't make acquisitions, stock drops even further . . . and so on.
If their microelectronics unit is spun off completely, not just as a tracking stock, it's possible it'll survive and eventually thrive. In the interim, they have a lot of ground to make up and it's hard to imagine their catching up enough to compete with JDSU/SDLI, NT, GLW, and ALAO. The industry doesn't stand still for a minute.
Pat |
