"Now, can someone explain why LU hasn't participated much in the general market's upward movement lately?"
Well, because it did back on January 6 when it hit a high of about $120/share and closed that day at $117 3/16. Lucent was then way ahead of itself so it dropped down to where it is at the present. The P/E scares everyone (the big investors, not the ones on this thread). Once the big guys decide that it is time to buy again it will move but not right now.
You should watch the volume each day...6 to 7 million per day is about average for this stock. When it goes over 10 million then something is happening. Back on Jan 20 (10,132,00 shares), Jan 21 (20,006,300 shares) and Jan 22 (10,330,500 shares) determined the drop from 115 1/2 to 102 1/16 by Monday, January 25. Before that, on January 13....22,850,100 shares traded taking the stock down to 104 1/4...then everything for the next four days was buying through Jan 20. After hours trading set the stage for the big drop the next day.
Little guys don't trade this stock to make the volume jump like that on a daily basis. I sure wish I was a fly on the wall in some of these places that move the market.
And all the PR that Lucent puts out daily about all the deals it is constantly making or in the process of making doesn't do diddly for this stock. McGinn does have some affect whenever he gets the bully pulpit to tell everyone what a great job he is doing. But all the press releases that are posted on this thread don't mean much.
Anonymous |
