This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Five Dumbest Things on Wall Street This Week

1. Lightheaded at Lucent

The lightweights at Lucent (LU) have stumbled again.

The Murray Hill, N.J., telecom-equipment maker warned late Monday of its latest disappointing quarter . Citing a slowdown in U.S. wireless-gear sales, Lucent said it expects fiscal third-quarter revenue to fall 13% short of Wall Street estimates. The poor showing sent Lucent down 6% Tuesday, while merger partner Alcatel (ALA) tumbled 5%.

"During the third quarter, our North American mobility business was adversely impacted by a slowdown in spending on some of our current-generation wireless solutions," said CEO Patricia Russo, who is slated to lead the merged company, in a statement.

Adverse impacts are nothing new at Lucent. Russo was claiming last November that the growth-starved company would post a 5% sales gain for fiscal 2006. But just two months later, Lucent unveiled a huge first-quarter shortfall and backed away from the annual growth talk.

Then in April, Lucent changed its mind again, saying it actually expected sales for the year to fall . At that point, the company finally ended its longstanding charade of providing annual guidance and then repeatedly changing it. Still, Lucent is off 29% since the merger announcement.

And if Russo has learned anything from the repeated pratfalls, you sure can't tell from her comments Monday.

"From [research and development] to sales, from product development to marketing, from finance to talent development," she gushes in a post-close merger update, "we are committed to being a role-model company for the 21st century."

Yes, CEOs everywhere are just dying to emulate these stooges.

Dumb-o-Meter score: 95. "This merger will create a world-class team that will deliver the best of both companies to customers around the world," Russo adds, as if anyone wants that.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -0.41%
MSFT $49.94 0.14%
NKE $58.19 -1.56%
T $38.74 -0.36%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs