Lucent Technologies Inc. (NYSE/LU) is often a stock that needs some significant loving. This former Wall Avenue darling has become discarded from the herd which is now on the lookout for some love on the road. Trading at practically $eighty in late 1999, the stock like quite a few Some others in the communications sector has been less than intense force recently, struggling with lackluster profits progress and anemic income.
Lucent has also undergone its share of lawsuits. Regardless of some recovery in the communications sector, the region remains a tricky position to operate. The Opposition is intense, pricing pressures are expanding, and margins are very low.
That's the reality for your communications sector, a place That is still in limbo given The present local http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 weather. So precisely what is Lucent suppose to accomplish? Shareholders have misplaced persistence in the power of chairman and CEO Patricia F. Russo in turning all-around the corporate and which makes it a star once again.
Down 96% from its late 1999 substantial, the reality is traders who purchased at that stage or even decrease will most likely under no circumstances recover their losses. Lucent will never be over a capital decline for those who acquired at the upper and inflated costs.
The business is earning income and its forward price-earnings multiple is acceptable, but given the gradual anticipated growth the shares upside may be confined.
Specified the mixed outlook for that communications sector, Lucent is attempting to acquire a important hug from rival and likewise troubled France-primarily based Alcatel SA (NYSE/ALA).
Lucent following being turned down already by Alcatel in 2001 is hoping this 2nd attempt is met with hugs and kisses, anything they love to do in France.
Alcatel is examining the prospective merger with Lucent, but it is during the drivers seat as its posture is significantly better than that of Lucent. To paraphrase, Lucent demands Alcatel far more.
But for Alcatel, a merger with Lucent could give the business much more exposure and a longtime community in the United States.
The deal if consummated could possibly be the main of many far more to come as battling telecom firms look for tactics to cut Expense and compete far more proficiently.
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