Is it time to buy Lucent (LU)?

[payaSo]

As of this writing, LU is indicated at 13 1/2, near its 52-week low of 12 3/16. In fact this level is close to a four-year low for the stock. LU rececently changed CEOs and is now in restructuring mode.

I'm getting the feeling that this stock has hit bottom and it is now a good time to come in. What do you think?

[aticus]

Actually, all indications are it might go lower. Without direct intervention from the Fed, I think tech-related stocks are going to take an even bigger hit in the first quarter of 2001. Why not wait till you see whether Bush goes ahead with that idiotic tax cut and see the effect on the economy? I'd hate to see you tied up to a tech stock in the case of rapid inflation and a Bear market.

Just my two bits worth. :)

[Carlos Agassi]

Not looking good at this point.

1) P/E is 36, above market average, making this stock, after having dropped so far, STILL expensive.

2) More bad news: Shareholders sued Lucent Technologies, Inc. (NYSE: LU) today and accused the company of misleading the investing public by overstating revenues, Berman DeValerio & Pease LLP (www.bermanesq.com) said.

http://quote.fool.com/news/symbolnews.asp?symbols=LU&currticker=LU&format=fraction&lpp=10&dtfrom=10%2F2%2F2000+5%3A08%3A59+AM&dtto=1%2F2%2F2001+5%3A08%3A59+AM&sourcetype=1&exch=NYSE%2CNASDAQ%2CAMEX%2CMF%2CU%2CUS%2CUSMF&cdnsortby=Date&sid=494956&pos=3&action=gs

[KuyaDanny]

One other sign you might want to look at is insider activity. If I were in the Lucent organization (officer, director, or employee) and knew very well the status and prospects of the business, I would probably be buying the stock if it was cheap and I thought it should be worth more.

Fortunately for us, all insider activity has to be reported to the government.

There are disturbing findings posted in InsiderScores (http://www.insiderscores.com/commentary/showarticle.asp?art_type=research&articleID=1594). Lucent insiders have not been buying any stock recently. We could take this to mean one, or both, of two things:

1) The stock price hasn't hit bottom yet; or
2) LU is in takeover talks (probebly as an acquisition target) - this explains why no insider is trading (it's illegal). If you believe this scenario, a buy might be warranted if you're looking to make back your money via any premiums offered by a prospective acquirer.

[lupuS]

Thank heavens for small blessings. LU closed yesterday at 15 3/16 because of Alan Greenspan's interest rate cut. That's a 12.5% gain from payaSo's indication when he thought of buying the stock.

[aticus]

That's true, lupuS, and I'd be happy for you, payaSo, if you bought it at that rate, but I think the lesson here is that you shouldn't rely on rate cuts from the Fed to prop up stocks.

I think it's safe to say the 50 pt. cut came as a pleasant surprise to everyone. But we can't keep relying on intervention from the Fed to boost stock sentiment.

That said, however, I do hope stocks continue to pick up, so that it may lead to a little "bounce" for Asian stocks as well. Heck, if even only PLDT gets a boost, I'd be happy.

By the way, speaking of PLDT, what's up with that Smart non-renewal of license issue? How will this affect PLDT? Or will it?

[zimdude]

I do not know about stocks, but Lucent and other Internet backbone equipment manufacturers were hit by the uncertainity that came upon the "old-school" telcos such as MCI Worldcom, AT&T and Sprint.

[lechon 2000]

By CBS.MarketWatch.com (http://cbs.marketwatch.com/archive/20010124/news/current/lu.htx?doctype=2003&value=&property=&source=htx/http2_mw)
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NEW YORK (CBS.MW) -- Lucent Technologies is planning to cut 10,000 jobs and take a restructuring charge of more than $1 billion, the Wall Street Journal reported in its online edition Tuesday, citing Wall Street analysts.

Most analysts expect the charge --which could include write-offs of inventory, discontinued products, real estate, plant closings and defaults on debt by customers -- to be between $1 billion and $2 billion.

Lucent is expected to lay off about 10,000 employees, representing some 10 percent of its total workforce of 106,500.

Lucent (LU: news, msgs) could announce the job cuts and restructuring charge on Wednesday when it releases its earnings.

Shares fell 25 cents to $18.81 on Tuesday.

Lucent could not be immediately reached for comment.

[lechon 2000]

The US Securities and Exchange Commission's enforcement division is conducting a formal investigation into possible fraudulent accounting practices at Lucent Technologies, Inc.

On Friday, Lucent shares fell $1.53 or 9% to close at $15.36.

The probe focuses on whether Lucent booked $679 million in revenue improperly during its 2000 fiscal year, which ended 30 September.

[lupuS]

Alcatel shares drop on report of Lucent deal (http://www.usatoday.com/money/telecom/2001-05-18-lucent-alcatel.htm)

PARIS (AP) — Shares of Alcatel fell 7.4% Friday in Paris after a published report that the French telecommunications equipment powerhouse is in takeover talks with U.S.-based rival Lucent Technologies.

Alcatel slumped after The New York Times reported that the companies are in advanced talks toward a deal that could value Lucent at slightly more than $40 billion.

Lucent shares gained 14 cents to $9.95 on the New York Stock Exchange.

The newspaper cited unidentified executives close to the discussions who said the chances of a merger, which could be announced as soon as early June, were only about 50-50.

"I will not comment one word on this subject," Klaus Wustrack, a spokesman for Alcatel, said in a telephone interview.

Lucent spokeswoman Mary Lou Ambrus declined to comment Friday on the report.

[Krakista]

The merger between Lucent and Alcatel has been called off.