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

To: William Hunt who wrote (5801)	1/22/1999 8:42:00 PM
From: Warren Gates	Read Replies (1) \| Respond to 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.

To: William Hunt who wrote (5801)	1/23/1999 2:09:00 AM
From: hitesh puri	Read Replies (3) \| Respond to of 21876

I second that William. Lazlo Birinyi has been pretty accurate for the last 3 years that I have followed him on the Wall Street Week with Louis Rukeyser show. Last year I subscribed to his firm's newsletter and the Aggressive portfolio that they recommend in it earned an impressive 81% return for 1998. All large cap companies within it. He added ASND into the portfolio around June and its double now since his recommendation. His method of using money flow analysis has shown results. -hitesh