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

To: Anonymous who wrote (7759)	5/6/1999 8:30:00 PM
From: polarisnh	Respond to of 21876

Anonymous, I wish I was sitting on 2095 shares of Lucent. HOLD ONTO THEM! With their acquisition of Ascend they are a force to be watched in the future. Lucent is on the cutting edge of the convergence of voice/video/data. Good Luck, Steve

To: Anonymous who wrote (7759)	5/8/1999 11:23:00 AM
From: Jack Whitley	Respond to of 21876

<<Now, can anyone tell me what I should do with my 2095 shares of Lucent? I just happened to move back into it on January 6 and haven't made a cent as of this moment. I really want it to go up a little so I can get out again with a little profit...all this is in my 401K and therefore is easy for me to do.>> Anonymous, For what its worth, I came into LU via ASND, purchased during and after the Fall 1997 ASND crash. The whole episode has been a fabulous positive gain for me, and I got a split on top of that in April. I am holding these shares with a 3 - 5 year timeframe, and you couldn't make me sell them by putting a gun to my head (and regardless of where the price goes this year). I see LU as the next Intel in terms of being the leader in intellectual capital and knowledge base in their communications industry, adding tremendous value to silicon-based product that there will be a huge demand for. If they execute, it is a no-brainer. I think I recently saw an analysis where the market cap of MSFT was currently 3 times that of LU. Granted, there is quite a delta in gross margins between the two due to differences in product, but I think that the spread in market cap is way too wide, and will ultimately narrow (with LU's cap increasing, even though LU has to compete in their industry, where MSFT does not have to). Also, I don't think the value of the intellectual capital and knowledge base at LU has even been valued by investors who are rooted in traditional fundamental analysis methods (but it will be eventually). If the intellectual capital is ever fully valued, you would see a PE even more garish than the current one. The information Mr. Fun has provided on this thread is a fantastic complement to the LU home page and other investment sites that you mentioned. A few people on this board need to take their sword out of its scabbard and hand it over to Mr. Fun. I just haven't seen any argument that points to a long term weakness in LU, or to selling this stock, if you have a longer-term investment outlook. jww

To: Anonymous who wrote (7759)	5/8/1999 11:58:00 AM
From: X Y Zebra	Respond to of 21876

Now, can anyone tell me what I should do with my 2095 shares of Lucent? I just happened to move back into it on January 6 and haven't made a cent as of this moment. I really want it to go up a little so I can get out again with a little profit...all this is in my 401K and therefore is easy for me to do. I do not tell anyone what to do... (as I hate when anyone tells me what to do)... However, as a suggestion...(since there are more than one way to skin a cat....) You could sell covered calls.... although the premiums have gone down, you can still receive some income off of your LU shares.... Depending on your objectives and "attachment" to Lucy, you can sell calls, with a strike price closer, or further from the current price... (preferably, above your entry cost).... the closer to current price, the higher the premium... as a guideline you can use the Max-pain point (or whatever name), in hopes that your shares will not be called away. You can do this every month, and then watch for fluctuations, if it goes down sufficiently to warrant taking a profit, with the idea that if the stock would bounce, then you could repeat the sale of cc, prior to expiration of the current month options. (I mean buy back your sold call, then repeat, if the stock moves up again, and the premium as well). Or.... sell a two or three month away call option, (the premium will be higher as you are selling time).... however, there is less control here as no one really knows where the price for Lucy will be next week, let alone two or three months away.... The results could be: 1. Call expires worthless: you keep the premium (profit), and still own the stock. Negative: NONE. 2. Strike price is met, (Hopefully, you set it up so the strike price is more than your basis, including commissions): Profit from the difference in your basis and the strike price, plus premium adds to the profit. Negative: If the stock jumps in price, (no one knows that for sure, particularly the timing of it), you lost out on the gain in excess of the strike price. Remember that you can always re-purchase the stock, providing there is still additional upside based on the new, (and higher price). The name of the game in participating in the stock market is to make money, not to fall in love with stocks... view it as if each stock were a mule that will give you a ride for money.... you can always change mules if the current one is too slow. The premium from the sold call is a little extra that in essence the potential of losing the additional upside in excess of the strike price, is the price you pay for insurance for the reduced risk. Again, not a recommendation, a mere suggestion, since you asked...