Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Taby who wrote (3655)	8/15/1998 8:20:00 PM
From: Raptech	Read Replies (2) \| Respond to of 21876

<<Torrents of cash are being pulled out of Lucent which today sank below the 50 day EMA for the first time since January. Selling has been orderly, but very aggressive as can be seen by an enormous stack of red bars on the volume indicator graph. Lucent has given back almost all the gains incurred during the most recent bull MACD green period that commenced in mid June. As such, prices are likely to see support at 76 dollars a share during this basing period which has the potential to turn into a correction. The volume is indicative of the fact that Lucent is being revalued by the street. Even at 85 dollars a share, Lucent is trading at a multiple of 55 times this years earnings and 45 times next years earnings. The reason that Lucent acquired a high multiple was that the predictability of earnings was bank. This is not the case anymore. If Lucent is granted a multiple more in-line with its growth rate, which is 20%, a forward year looking PE of 30 looks more appropriate. This means Lucent gets chopped all the way down to approximately 60 before all is done and all is said. All the big cap stocks that are trading at nifty-50 ratios are being taken out and shot. Stochastic has been very weak. The stochastic lines have been dredging the bottom of that indicator graph for over a month. MACD indicates a steady decline as evidenced by the Histogram, which is pegged to the floor, and the equi-distant spacial relationship between the lines themselves which are akin to someone's mouth hanging open in pain.>> From Clearstation. We're nearing support at 88.33. I continue to be loooong! Rap