Key points:
- Lumen Technologies (LUMN) stock was unmoved by potential sale rumours.
- However, there are pros and cons to investing in unconfirmed rumours or not.
- Read on to find out what your options are in such scenarios.
The Lumen Technologies Inc (NYSE: LUMN) stock price was largely unmoved despite rumours of a potential sale of its European infrastructure assets. According to some industry sources, the telecoms group is looking to dispose of its European assets by selling them to another company.
There were scanty details of the potential sale, which indicated that Lumen was working with Morga Stanley to create a complete package of the assets to be sold.
Also read: The Best Undervalued Stocks To Watch In 2022.
It was unclear whether such a deal was in the pipeline, with sources saying that the move was in its early stages. Therefore, investors who want to capitalise on such a potential deal will have to subscribe to industry reports mainly targeted at professional investors.
For the retail trader, it is best to trade based on the publicly available information since many do not have access to such industry reports. Furthermore, the real impact of such a deal would become evident once the deal is public.
In the meantime, those eager to buy Lumen shares may do so now since the information on such a potential deal is still relatively new. However, there are no guarantees that such a deal will materialise, which is a risk you must consider.
On the other hand, if such a deal materialises and results in a windfall for existing shareholders, those who bought early will be at an advantage compared to those who waited for a public confirmation from the company.
Therefore, there are pros and cons to buying now and later, and you as an investor should weigh both of them. For example, you could buy now and see your shares soar if the deal is confirmed or fall if the deal is scrapped.
Those who choose to wait might be giving up those massive gains they could have if the deal is confirmed, but they could also be spared the losses that could occur if the deal is scrapped.
Finally, it comes down to your risk tolerance and what kind of investor you are. There are no right or wrong answers here. Do what is right for you.
*This is not investment advice. Always do your due diligence before making investment decisions.
Lumen Technologies stock price.
Lumen Technologies' stock price barely moved as the rumours were unconfirmed.