Lucent Technologies Inc. (NYSE/LU) is a inventory that demands some important loving. This previous Wall Road darling has been discarded via the herd and is also now trying to find some adore on the road. Investing at practically $eighty in late 1999, the stock like lots of others inside the Additional hints communications sector continues to be less than extreme force in recent years, going through lackluster earnings progress and anemic gains.
Lucent has also passed through its share of lawsuits. Despite some recovery during the communications sector, the area stays a tough place to function. The Level of competition is intense, pricing pressures are escalating, and margins are small.
That is the fact with the communications sector, an area That continues to be in limbo supplied The present local weather. So what's Lucent suppose to carry out? Shareholders have dropped tolerance in the flexibility of chairman and CEO Patricia F. Russo in turning all over the organization and which makes it a star once more.
Down ninety six% from its late 1999 high, the reality is investors who purchased at that level and even decreased will probably by no means Get well their losses. Lucent will never be more than a capital reduction for those who ordered at the upper and inflated price ranges.
The corporation is making money and its forward price tag-earnings a number of is reasonable, but specified the gradual expected development the shares upside can be limited.
Presented the mixed outlook with the communications sector, Lucent is attempting to get a significant hug from rival and likewise troubled France-dependent Alcatel SA (NYSE/ALA).
Lucent immediately after getting rejected by now by Alcatel in 2001 is hoping this next endeavor is met with hugs and kisses, anything they love to do in France.
Alcatel is reviewing the potential merger with Lucent, but it is inside the drivers seat as its situation is a lot better than that of Lucent. Quite simply, Lucent demands Alcatel a lot more.
But for Alcatel, a merger with Lucent could give http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 the company far more publicity and an established community in America.
The deal if consummated could possibly be the first of many additional to come back as struggling telecom businesses appear for ways to chop cost and contend additional effectively.
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