Lucent Technologies Inc. (NYSE/LU) is a inventory that needs some major loving. This previous Wall Avenue darling has long been discarded because of the herd and is particularly now on the lookout for some adore on the Street. Trading at almost $80 in late 1999, the stock like many Many others within the communications sector has become underneath serious tension recently, facing lackluster revenue advancement and anemic revenue.
Lucent has also passed through its share of lawsuits. Irrespective of some recovery inside the communications sector, the region continues to be a hard position to function. The Levels of competition is fierce, pricing pressures are developing, and margins are small.
That's the truth to the communications sector, a place That continues to be in limbo provided The existing climate. So precisely what is Lucent suppose to accomplish? Shareholders have lost tolerance in the flexibility of chairman and CEO Patricia F. Russo in turning all-around the corporation and making it a star all over again.
Down ninety six% from its late 1999 high, the truth is investors who bought at that amount or maybe reduced will probably never ever Recuperate their losses. Lucent won't ever be greater than a funds decline for people who obtained at the upper and inflated rates.
The business is generating income and its ahead price tag-earnings numerous is affordable, but specified the sluggish envisioned development the shares upside can be limited.
Specified the combined outlook for your communications sector, Lucent is attempting to get a main hug from rival and likewise troubled France-dependent Alcatel SA (NYSE/ALA).
Lucent after remaining rejected previously by Alcatel in 2001 is hoping this next attempt is satisfied with hugs and kisses, a little something they love to do in France.
Alcatel is reviewing 소액결제현금화 the possible merger with Lucent, however it is from the drivers seat as its position is much better than that of Lucent. Basically, Lucent desires Alcatel extra.
But for Alcatel, a merger with Lucent could give the corporation much more publicity and an established community in The usa.
The offer if consummated could possibly be the very first of numerous more to come as struggling telecom corporations glance for methods to chop Value and compete a lot more effectively.
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