Lucent Technologies Inc. (NYSE/LU) is a inventory that requires some big loving. This previous Wall Road darling continues to be discarded because of the herd and it is now looking for some adore on the road. Trading at nearly $80 in late 1999, the stock like several Other individuals from the communications sector is underneath critical pressure in recent years, struggling with lackluster income expansion and anemic gains.
Lucent has also undergone its share of lawsuits. Even with some Restoration while in the communications sector, the world remains a difficult area to operate. The competition is intense, pricing pressures are growing, and margins are reduced.
That may be the fact for that communications sector, a place That continues to be in limbo provided The present local weather. So precisely what is Lucent suppose to accomplish? Shareholders have shed patience in the ability of chairman and CEO Patricia F. Russo in turning close to the corporation and rendering it a star all over again.
Down ninety six% from its late 1999 significant, the reality is investors who acquired at that degree or maybe lower will probably never Get well their losses. Lucent won't ever be over a money decline for those that procured at the upper and inflated rates.
The corporation is producing money and its forward price tag-earnings various is affordable, but supplied the sluggish predicted expansion the shares upside can be restricted.
Offered the combined outlook for your communications sector, Lucent is trying to acquire a important hug from rival as well as troubled France-based mostly Alcatel SA (NYSE/ALA).
Lucent right after being turned down now by Alcatel in 2001 is hoping this 2nd attempt is satisfied with hugs and kisses, some thing they like to do in France.
Alcatel is reviewing the prospective merger with Lucent, however it is during the drivers seat as its placement is significantly better than that of Lucent. Basically, Lucent wants Alcatel far more.
But for Alcatel, a merger with Lucent could give the corporate more publicity and an established network in America.
The offer if consummated could be the first of numerous more to come as struggling telecom 정보이용료 companies appear for tactics to chop Value and contend much more successfully.
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