Lucent Technologies Inc. (NYSE/LU) is usually a inventory that desires some significant loving. This former Wall Road darling continues to be discarded from the herd which is now on the lookout for some enjoy on the Street. Buying and selling at practically $80 in late 1999, the stock like a lot of Some others in the communications sector has actually been below significant force in recent times, experiencing lackluster revenue expansion and anemic revenue.
Lucent has also gone through its share of lawsuits. Inspite of some recovery during the communications sector, the realm remains a complicated put to work. The Competitiveness is fierce, pricing pressures are increasing, and margins are low.
That is the truth for your communications sector, an area That continues to be in limbo specified the current local climate. So what exactly is Lucent suppose to do? Shareholders have missing persistence in the ability of chairman and CEO Patricia F. Russo in turning close to the corporation and making it a star once more.
Down 96% from its late 1999 substantial, the truth is investors 신용카드현금화 who acquired at that stage as well as lower will probably in no way recover their losses. Lucent will never be more than a funds reduction for people who bought at the higher and inflated rates.
The company is creating cash and its ahead price tag-earnings many is acceptable, but provided the gradual expected growth the shares upside may be constrained.
Given the mixed outlook with the communications sector, Lucent is attempting to secure a key hug from rival and likewise troubled France-dependent Alcatel SA (NYSE/ALA).
Lucent right after currently being turned down now by Alcatel in 2001 is hoping this next attempt is met with hugs and kisses, anything they like to do in France.
Alcatel is examining the possible merger with Lucent, however it is in the drivers seat as its posture is much better than that of Lucent. To paraphrase, Lucent demands Alcatel more.
But for Alcatel, a merger with Lucent could give the organization extra publicity and an established community in America.
The deal if consummated could be the primary of numerous more to come as having difficulties telecom firms seem for tactics to chop Charge and contend extra proficiently.
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