Taby,
Here is one hypothesis to why the stock has not moved upward, proportional to the Dow:
I think any stock that moves upward very quickly is subject to huge profit-taking on any negative news. The LU stock spent only three days in 90's, before moving up to 108. With negative market sentiments, some of the people who bought LU in 90's have decided to lock in this huge very short term profit. I also believe the investors that are now buying this stock in the 90's are more willing to tolerate a drop in the price, since they are buying it well off of its all time high of 108 «.
This company is hitting it on all cylinders! Earnings are consistently above expectations. New orders are continuously coming in. Demand is very strong.That is why I call Lucent "Baby Dell".I, personally expect one stock split every twelve months, for the next three or four years, or until the company matures.
I think for the next few weeks the stock will move sideways, until the market calms down, and more mature investors(less speculative traders) buy the stock. For now, patience is needed . Lucent will have its run again.
Regards,
Ramin
|
