I'm going to repost this little snippet every time some jackass comes on here saying that Lucent is going down the toilet. I'll sell my LU the day people stop using computers and phones. Of course Lucent will have changed the world by then anyhow....
A friendly (and well intended), reminder:
While it is obvious that one must invest in solid companies, (such as Lucent), in specific instances, (determined by one's objectives), there is a clear separation between the management and performance of a company from its operating point of view, AND the specific performance of the stock price from time to time.
Indeed, sometimes, it appears that one does not reflect the other, primarily due to reasons totally unrelated.
Determined by individual objectives, there may be times in which selling Lucent may not be a bad idea. Since, during specific periods, the stock may be reaching a short term top.
Outright selling it can be rewarding, or, selling calls against the position is also an alternative.
Such strategies has nothing to do with the operating fundamentals, or management of the company.
While not applicable to all investors... Stocks are like mules that carry gold.... from the mine to one's bank, from time to time, some mules get tired, and we must exchange them for fresher ones... which will carry the gold faster.
Like everything else, one must learn how to execute the finer points of mule trading, one does not want get stuck with a jackass... <g>
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