For those of you who are unaware, Friday was the first trading session of the new year. The hot topics for 2004 is VOIP and Nanotechnology.
Lucent is involved in both. This gives lucent an edge over many smaller companies. The rise on Friday is speculative based on their involvement in these industries. While there is no news, where else can you go to buy a share of a company that is involved in the two hottest technologies of 2004 for under, and around $3.00.
In addition, many people are expecting Lucent to remain profitable for the past quarter. I will reserve judgement on that until next week.
All in all, Friday was nothing more than positioning for the new year. If this holds to be true, you should see a steady climbing in value of 1-2% over the next several weeks.
The big boys having taken their tax losses and such are now getting off the conservative seat they were on to protect end of year profits and are ready to play with the high risk reward.
Follow the big money and ride LU as long as their buying. Lu should be at 3.5-4.00 by end of Jan.
Ignore the pumps of $7.00. Will not happen unless Lu has a drastic unexpected improvment in their numbers for the past quarter.
I do not know if they remained profitable yet for the past quarter, but I know they was not DRASTIC improvements. $7.00 will not happen. It may be a possibility for end of year.