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Tengler: Hold on to Lucent
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December 22, 2000: 3:04 p.m. ET
Fremont Investment president & CIO is also upbeat on Ericsson and Nokia
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NEW YORK (CNNfn) - Nancy Tengler, president & chief investment officer of Fremont Investment Advisors, said Friday gave an optimistic forecast for Lucent as the company adjusts to a new CEO. Tengler also backed Ericsson and Nokia as good stock picks for investors to park their money.
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Name: Ronaldo, Honduras
Question: Lucent (LU: Research, Estimates). I have been a consistent investor in LU since March 1998. In view of what has happened this year, should I sell or accumulate at these ?
Answer: It depends on how much it represents of your overall holdings, but you should definitely not sell and maintain your holdings. Depending on how much you own, I would add modestly at these levels. Lucent is in the midst of a significant turnaround -- the new CEO will be very important and the CFO needs time to fix the problems of the past. They're definitely in the right space.
Name: Randy, New York
Question: Ericsson (ERICY: Research, Estimates). What do you expect to happen to this stock in the long term and is it a good buy at its current price?
Answer: Like all of the handset and wireless infrastructure companies, Ericsson's stock has sold off dramatically from its highs. They're definitely the leader in the wireless infrastructure space and although we do not own it, I would feel comfortable buying the stock at these levels.
Name: Unknown
Question: Nokia (NOK: Research, Estimates). My son and I have invested in Nokia. Our average share price is $50. Where is Nokia headed? Are they still a good stock to hold on too? What is their projected price target?
Answer: Nokia is clearly the leader in handsets and is gaining share against Motorola (MOT: Research, Estimates) and Ericsson. It's an extremely well-managed company and although we don't establish price targets, we would expect for the stock to be a solid, long term performer.
Name: Minru (location unknown)
Question: With an economic slowdown or recession, what shall I do for my 401(k)?
Answer: We fully expect for equities to continue to provide superior returns versus all other asset classes over the long term. I would use weakness to add high-quality holdings.
Name: Jean (location unknown)
Question: Does the Federal Reserve base their decisions more on the Dow's performance than the Nasdaq? Seems their stance is that the Nasdaq is overvalued. Based more on earnings potential than fundamentals like P/E.
Answer: Of course the Fed would deny ever paying attention to market levels, but Fed Chairman (Alan) Greenspan has expressed concerns historically about speculative excess. I think currently the Fed has been focusing on unemployment, not the markets.
CNNfn welcomes your e-mail questions for our "Talking Stocks" guest. Please include your first name, state and one stock question per e-mail. Please keep in mind: "Talking Stocks" is for specific stock questions only. If you do not see an answer to your e-mail here, it is because our guest does not cover the company. 
--compiled by Parija Bhatnagar
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