Editor's Note: This originally ran on RealMoney on Jan. 11. Cramer holds Kmart in his Action Alerts PLUS portfolio.
Hype succeeds, short-term. It stinks long-term. That has to be the reason
been so silent despite the unbelievable series of wins it has gotten in the last two months. First, Lucent won the
business, a major new order. Then
announced a merge with
, the latter being all Lucent, the former being no Lucent, and Sprint now will build out its network using more Lucent parts.
Yet the company is silent. The company never crows. The company just takes it all in. I think that's because Lucent CEO Patricia Russo saw it all happen during the good old days at Lucent, where Lucent constantly was bragging about orders that it hadn't nailed down yet and offering cheap financing to those who were doing the ordering. Russo knows that the story will have to be told by others now, not her. She can't be seen as hyping, given the lessons and the costs of hype from the previous regime.
In some ways, it is a shame. I think we would have a higher stock if Lucent were promotional. But in other ways, all that's happening is the stock's rise is delayed. Unless you have an appointment somewhere, you have to ask, "What's the hurry?" People have been emailing me, "I am down 50 cents on Lucent," to which I can only say, "Hold it; did I tell you to buy it all at once at the high? Was that really my directive?" Given that I preach, endlessly, that you shouldn't commit all your capital at one level, I can't even take these top-tickers seriously.
I always value second opinions. You in Lucent? Call Lehman Brothers. Get the reports by Steve Levy. He's been around. He knows the history. Read what he is saying. It confirms everything my sources are telling me.
And remember, sometimes it is not the velocity of the move that matters, it's the destination. You know where I think this one is heading.
P.S. One of the keys to successful investing is a smart portfolio strategy. So you might want to consider a
, where I trade my own $3 million portfolio and advise you on my every move
At the time of publication, Cramer was long Lucent.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made.
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