On November 15, all shares of Lucent Technologies purcahsed for Northlake clients on October 19, 2004 were sold at $4.05. The shares were purchased as a trading idea at $3.55. The idea behinds the trade was to…..

….take advantage of Wall Street’s skeptical view of Lucent ahead of several potential catalysts. Specifically, Northlake expected another decent quarter to be reported, awarding of a large contract for wireless infrastructure by Cingular, and possibly news that would reduce fears surrounding Lucent’s large pension and health care liability to its retirees.
Fortunately, each one of these catalysts occured and the shares reached our $4 target ahead of schedule. Trading ideas require discipline, so despite good momentum in the shares and a better tone on Wall Street about Lucent shares, the shares were sold.
Other holdings recently purchased in client accounts are intermediate to long-term investment ideas. Motorola is the closest to a trading idea and would be most likely to be sold if the shares either (1) achieve the low to mid $20s target or (2) the expected catalyst (strong 4Q handset shipments and earnings) fails to materialize.