Alcatel-Lucent Risk and Reward is Beautiful

Introducing an in-depth 25 page profile on Alcatel-Lucent. Not all of that is substantive though, I think the substance is about 19-20 pages. The price point is a bit high. For that I apologize, so head over here, and follow some instructions. At the bottom is the key to 25% off. You got to love that. Should this report be successful I will be writing more in my style, which means no computer-generated nonsense. Qualitative research is the way to go, because the quantitative approach is everywhere and can be derived from publicly available information. There are research sites out there that will charge you close to $100 dollars or more per report for fancy presentation of information you can find for free from numerous sources. Then there are other services that give you old rarely updated commentary for a subscription fee that runs in the hundreds or thousands. Those are geared toward institutional investors that can afford it.

Take Hold of your Fate: Why You Need to Be in Charge of Your Investments

This is written for the individual investor. Your money manager has only to think short-term. Getting that 5-10% growth is a must. They have to take risks that show that growth. That leads to a certain level of risk, because they do not want to be flat. Getting 1-2% by playing to too safe won’t beat savings accounts forever. They also cannot take on the long plays with a fantastic risk-reward ratio. If I told you that you can get double your money but it will take 3 years, you might take the deal. Your money manager would not. Showing 0% or -1% for 2 years will not look good for them. They cannot make the long-term investment that turns $1,000 into $10,000. Alcatel-Lucent has that possibility. Would you risk losing $1000 for the potential to make $10000? Your other options are going with so called “safe” investments that give you 5% a year, and then a 2008 comes around and you suffer deeply for it. Turn $5000 to less than $6500 at 5% compounding yearly for 5 years, while risking losing $0-$5000 if there is a downturn in those 5 years? This suggests against both stocks and long-term holding. On a really large timescale holding can make sense, but that is a separate issue.

I think I will write an article about the short-term thinking of money managers at The Market Archive a site offering free articles about stocks, as well as lessons.

By the way, there is a ton of free information about ALU at The Market Archive. This post simply exists to chat a bit informally about the company, and why I like it. Its not about heavy substantive research. After all, the point is for you to buy the report that I spent a lot of time putting together. It explains a little bit about why I came to ALU, but not why I really like it. You know just to be nice. You don’t have to go over to the Market Archive to get your discount.

A Small ALU Position Goes a Long Way

Alcatel-Lucent has a great risk/reward profile. You can make a small investment and get a lot of shares. The potential for the company is huge if it can become profitable and successful. Even if the probability is low you are only risking a little money. You can lose 100%, but the gains would be massive. A profitable ALU could get to $10 over the next 5 years. Maybe it takes 10, but $10 is over 5 times your money. How long would you wait for that? Sure the money is elsewhere but if you don’t have the time to sit at your computer and actively trade, then what would you do? Invest in Apple at $600? Oh, sorry…. is it too soon. You could buy gold and hold onto it. Three years ago I read it was going to $5000/oz in a matter of years. See the trend was strong and gold was moving SO fast. Oh…. too soon?

Why is ALU better? Because for a small investment you could make a large return. It probably impacts your account far less. How much would you have to invest in IBM to make $4000 (assuming you get 5x from an ALU investment of $1000 you would have $4000 profit)? How much of your money is tied up? That does not mean invest all that money into ALU. It means do your research and find a ton of companies that have hope for the future, but a crappy present. You invest in enough informed longshots a few of them pay off big, a few pay off okay, and a few fail. If I had just $5000 to invest. I could find 5 companies like ALU with hope for the future, plans for the future, and a dreadful present. If one of them goes 5x I would break even.If you are sloppy in your research you could lose 5 times out of 5. I do intense research and not just for the numbers, those are boring.

You are fully capable of doing the same. I did a ton of work to help you along. I’m writing this at 5AM. I’ve had many late nights researching for this report. These companies have crappy numbers. It is all about the future. I would only need to be on the money one time out of 5 (20%) and I would be back where I started. That is assuming I don’t bail out when it becomes evident that my argument in favor of the company is wrong. It also assumes that I do not add to my investment as I am slowly proven right. I’m pretty smart even if I do say so myself. I trust my research skills and my interpretations.