Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.770

-1.8%

1:56 PM EST

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To: David Hansen who wrote (21715)	3/21/2005 7:32:51 PM
From: stock bull	of 21876

Re: <<Enough with the reverse split... It is a neutral event. You can point to all kinds of historical data and show that when companies were performing reverse splits there were all kinds of negative consequences... This has nothing to do with the split itself but with all the corollary events that drives a company to a point where the split is necessary.>> Yes, a reverse split is a neutral event, unless you are a small share holder who then gets forced out of the stock. Of course, you can also say this is a positive, as it reduces the outstanding shares and the eps goes up. And, lets not forget about the potential shorts that might pile onto the stock...unless the company does so well that the longs pile on. If my memory is correct, the reason that the BoD asked for the right to reverse split the stock was when they were looking at the possible delisting from the NYSE. IMO, given that delisting doesn't become a problem, I don't think the stock will split. Russo has stated a number of times that she wants to move the stock up as a function of the company's growth. In any event, time will tell how this plays out. Stock Bull

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