P.M.Freedman:hold or fold.
let me preface by saying I have followed LU at arms length
( too expensive P/E ;debt ).
I will say that they are into a lot of exciting new technology especially in optical transmission and wireless.
Having said that I will add that they are weak in networking as the WCOM fiasco has demonstrated. This will be further confirmed in the future.
The internet will be based on IP+ATM.
We have seen their software with WCOM, ( if that is a true represantaion, it was a disaster.
They have no "in-house" development of ATMs and ended up buying Cascade Communications through Ascend.As networks become " globalized", powerful, carrier class ATMs
will be vital. You need powerful, telco-standards-based hardware ( not quirky software ) to handle the punishing volume of voice-video-data-, all digitized, that will flood the networks and airwaves.
IMHO LU does not have that yet. Maybe one day. Telcos require 1-2 years of testing before buying anything.So during this time LU is vulnerable.
LU will have a place in the telecom future.
However after the last 10 day debacle,with looming market y2K and interest rate jitters until end of the year, I think LU will likely be weaker than stronger.
Thus near term ( 4 months ), if I could sell without big loss now, preferably with a gain, I would. I would then look to reenter at a lower price. Mid 50s.
If you are long term holder however, with a 1 year outlook, then I would hold,
All IMHO,
TA
Hold or fold?
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