Lucent Technologies (LU) Message Board

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Technology Stocks : Lucent Technologies (LU)

LU 2.560

-0.4%

Nov 18 3:59 PM EST

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To: William Hunt who wrote (5801)	1/22/1999 8:42:00 PM
From: Warren Gates	Read Replies (1) of 21876

THREAD - read between the lines ... It looks like Ascend and Lucent are saving revenues for a rainy day. Let's face it, the market has been on a tear lately and it wouldn't really help them much more to put out real blockbuster quarters. For Lucent, it is in its best interests to smooth out its quarter revenues and for Ascend, it doesn't want investors to think Lucent should have paid more so they too held back some revenues. I think the selloff is partly attributed to the fact that in effect Lucent already preannounce their next quarter earnings. No more surprises, so a lot of momentum players decided to unload. Lucent should settle down near its 50DMA of 100 and would most likely move sideways for the next 2 months. One good way to profit from this sideways move is to buy Ascend and sell Lucent calls. It's like a covered call with huge premium. The risk on the downside is minimal because there's only so much that Ascend shareholders will allow their stock to be dragged down by Lucent, unless it is a general market selloff.

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