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Alcatel-Lucent Message Board

  • rmarcha005 rmarcha005 Dec 19, 2011 6:45 PM Flag

    Was it a mistake to.....

    purchase 4,000 shares of ALU at $4.99 a few months ago. Since then it has done nothing but go down. I am thinking of just selling and cutting my losses for tax purposes but then on the other hand, I have a feeling based on info I have read about the future of ALU that it will look good in a few years. Opinions?

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    • I guess I have to respond to this. I also entered much too high and I have a potfull. Often/usually a stock will bounce back after a negative report or a downgrade. I lightened up a little going into the earnings announcement, but started buying back too soon. The stock has had no meaningful bounce, just down, down, down. What you have to do is look at the current situation. Why did you buy originally? Is this reason still true, or did something really change? If you had none, would you buy it at these levels? If you would buy it here, keep it and buy a little more. It may well go a bit lower. Keep buying. You have an absolute bet here. You will lose everything, or if you hold patiently, you will make a lot of money. The stock is very volatile. If/when you have a sizable position, you may want to trade it while increasing your size. Just remember, as in any stock, you can lose it all. Don't bet the grocery money. Good luck.


    • the crazy part of this is the market has not even crashed yet and this is trading as its bankrupt I can imagine what the stock price would do if the market crashed with the ero falling we If th qrt numbers are very bad we will go below 1.00 Undervalued here my opinion only for now

      • 1 Reply to stockmarketdow
      • original poster said:
        "I am thinking of just selling and cutting my losses for tax purposes"

        don't you think that has a lot to do with
        why it's $1.39 ? it's a little too late
        to join that crowd.
        Your best bet is to sell the stock, lock in
        the loss and convert into $1 strike calls,
        pick your month. That way you get a higher
        beta exposure (bang for your buck) with the
        same amt. of money..... and don't have to wait
        30 days to buy back on a wash rule.
        I'm going to pick up some calls late this week.
        just want to make sure the end of the tax selling arrives. next week is the last one.

    • rmarch, my advise is don't sell. If it were up in the $4 range I would of considered but now that you've rode it so far down. Your to close to where it could bottom. Don't chance it. Ride it out and if you can- average down when you feel it's right. Not when somebody else say's to or you may miss the boat. ALU has a lot going for it. If you don't need the money than leave it alone. You will get your return back and I believe it will be more, a lot more. But it's going to take waiting out this euro dept and listening to the bashers trying to drive it further down. Hang in there. Long & Strong

    • I bought in at $3.89 a share. I would not sell. No need to sell, to many positive news coming out of ALU