To all- I've done a lot of research on this rumor of LU taking over Tellabs. No comment from Tellabs. About a 15 % chance of it's being true. Firms putting out these rumors, are also in the business of selling advice, for mainly short term traders and they gather over $5 million per year in selling these tip sheets. Once they have notified their subscribers, then guys like Charles Payne CEO of Wall Street Stratagies etc. get on CNNFN,squakbox,hot stories,etc. etc. and pass out to the general public these rumors. If a candidate goes up $5 or a quick 10%, their clients are notified by twice a day e-mails and automatic phone sell signals to take their profits and run. Now if they talk about 500 takeover deals a year and 41 of them actually come to past,then it's the same as a blind dog will eventually find a fire hydrant to take a leak , once in awhile. In the meantime, cos. like Wall St. strategies are brokers in these various stocks, so they can make money sending out rumors,selling options and stocks of the cos. involved plus probably make money with positions or co. held stock.
I do my own homework, and I remain a long term Tellabs holder,preferably as a privately run company. I feel that Tellabs is undervalued now,and that it's going to at least $70 to $80 by year's end,with a one year overdue,stock split in 1998 for 2 for 1.
DAVE DICKERSON |
