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Editor's Note: This originally ran as an alert to Action Alerts PLUS subscribers at 8:19 a.m. EST on Jan. 20. Cramer holds Lucent in his Action Alerts PLUS portfolio.




profit declines 49%," screams the headline in The New York Times. "Lucent quarterly profit fell 50%," says

The Wall Street Journal

. That, plus so-called "light" revenue, contributed to a not-great quarter, both papers declare.

Well, excuse me. Lucent (did everything I wanted. Did it do


than I wanted? No, and you could argue that "more than I wanted" is right if the stock is going to go to $5 this year. But did the company really do less than it said?

I have to tell you that everyone on the conference call yesterday, and I mean it, everyone, knew that profit would decline by half. The company repeatedly had said profit would decline by half. Repeatedly. That's not the news. The revenue "miss?" I would certainly would've liked to see another $50 million in revenue. But that wasn't worth the billion in market cap sliced off the company after the news.

Here's the rub on Lucent: It's taking share and kicking butt in wireless. Wireless is the future. In the meantime, its land-line business isn't so hot. Understood. Lucent will be the ultimate winner in wireless, which is where I want to be. So I am sticking with Lucent and will buy more when it is below my cost basis.

Wednesday's action was an overreaction. But at $3.42, the stock isn't yet at a level where it helps me to buy more. So I wait. You should, too.

P.S. One of the keys to successful investing is a smart portfolio strategy. So you might want to consider a

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At the time of publication, Cramer was long Lucent.

James J. Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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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