Lucent Requirements Some Loving
Lucent Technologies Inc. (NYSE/LU) is really a share that needs some main loving. This former Wall Street darling has been discarded by the herd and is now searching for some love for the Street. Investing at practically $80 in late 1999, the stock like many others inside the communications sector may be under severe pressure in recent many years, facing lackluster revenue growth and anemic income.
Lucent has also gone via its share of lawsuits. Despite some recovery inside the communications sector, the area remains a tough place to run. The competition is fierce, pricing pressures are growing, and margins are reduced.
That could be the reality for your communications sector, an area that remains in limbo provided the current climate. So what exactly is Lucent suppose to accomplish? Shareholders have lost patience within the ability of chairman and CEO Patricia F. Russo in turning around the business and making it a star once again.
Down 96% from its late 1999 large, the reality is investors who bought at that level or even lower will most likely by no means recover their losses. Lucent will in no way be much more than a capital loss for individuals that bought at the higher and inflated costs.
The organization is making cash and its forward price-earnings several is reasonable, but given the slow expected growth the stock’s upside might be restricted.
Offered the mixed outlook for your communications sector, Lucent is trying to have a main hug from rival and also troubled France-based Alcatel SA (NYSE/ALA)
Lucent following being rejected already by Alcatel in 2001 is hoping this second attempt is met with hugs and kisses, one thing they love to do in France.
Alcatel is reviewing the prospective merger with Lucent, however it is in the driver’s seat as its position is a lot much better than that of Lucent. In other words, Lucent wants Alcatel much more.
But for Alcatel, a merger with Lucent could give the organization a lot more exposure and an established network in the united states.
The offer if consummated could possibly be the first of several a lot more to appear as struggling telecom companies try to find solutions to cut expense and compete more effectively.
Note: you are welcome to post this article on your site if it is monetary related. You ought to cut and paste the bio and ensure the web site link is live. Also please e-mail me to let me know.
You can find more information about stock market listings, dow averages, and stock streaming quotes
Tags: Ala, Alcatel, Darling, Forward Price, Herd, Hugs And Kisses, Inflated Costs, investing tips, investment, Lawsuits, Limbo, Lucent, Lucent Technologies, Lucent Technologies Inc, margins, Merger, Nyse, patience, Price Earnings, Russo, Shareholders, stock market, stock trading, Wall Street