Lucent Technologies Inc. (NYSE/LU) can be a stock that desires some significant loving. This former Wall Street darling is discarded by the herd and is also now looking for some really like on the Street. Investing at just about $eighty in late 1999, the stock like quite a few Other people from the communications sector continues to be below intense tension in recent times, struggling with lackluster profits expansion and anemic revenue.
Lucent has also gone through its share of lawsuits. Regardless of some Restoration in the communications sector, the region continues to be a tough place to operate. The Level of competition is fierce, pricing pressures are growing, and margins are lower.
That's the fact for the communications sector, a region that remains in limbo specified The existing local climate. So what's Lucent suppose to do? Shareholders have lost persistence in the ability of chairman and CEO Patricia File. Russo in turning all around the business and making it a star once more.
Down 96% from its late 1999 higher, the fact is investors who bought at that stage or perhaps decrease will most likely never ever Recuperate their losses. Lucent will never be in excess of a capital decline for people who purchased at the upper and inflated charges.
The business is earning dollars and its ahead selling price-earnings many is affordable, but provided the sluggish envisioned development the shares upside could possibly be confined.
Presented the blended outlook for that communications sector, Lucent is attempting to get a big hug from rival and likewise troubled France-dependent Alcatel SA (NYSE/ALA).
Lucent soon after being rejected presently 소액결제정책 by Alcatel in 2001 is hoping this second attempt is met with hugs and kisses, a thing they like to do in France.
Alcatel is examining the probable merger with Lucent, but it's while in the drivers seat as its situation is far better than that of Lucent. In other words, Lucent wants Alcatel extra.
But for Alcatel, a merger with Lucent could give the company far more publicity and a longtime network in America.
The deal if consummated could be the very first of numerous additional to return as struggling telecom providers glimpse for ways to chop Price tag and compete a lot more effectively.
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