Lucent Technologies Inc. (NYSE/LU) is usually a stock that needs some main loving. This former Wall Street darling has long been discarded through the herd and is now on the lookout for some adore on the Street. Investing at practically $80 in late 1999, the stock like numerous Some others from the communications sector has become beneath serious stress in recent times, struggling with lackluster profits growth and anemic revenue.
Lucent has also passed through its share of lawsuits. Even with some recovery from the communications sector, the area continues to be a challenging position to operate. The competition is fierce, pricing pressures are increasing, and margins are low.
That may be the truth for the communications sector, a region That is still in limbo specified The existing local climate. So what's Lucent suppose to accomplish? Shareholders have misplaced patience in the ability of chairman and CEO Patricia File. Russo in turning all around the corporation and rendering it a star once more.
Down ninety six% from its late 1999 superior, the reality is traders who purchased at that amount and even lessen will most likely hardly ever Get well their losses. Lucent will never be greater than a funds loss 신용카드현금화 for people who acquired at the upper and inflated costs.
The business is creating dollars and its forward rate-earnings a number of is affordable, but specified the sluggish expected growth the shares upside can be restricted.
Presented the combined outlook for that communications sector, Lucent is trying to obtain a important hug from rival and also troubled France-primarily based Alcatel SA (NYSE/ALA).
Lucent immediately after remaining turned down presently by Alcatel in 2001 is hoping this second attempt is fulfilled with hugs and kisses, something they like to do in France.
Alcatel is reviewing the probable merger with Lucent, but it's within the http://edition.cnn.com/search/?text=소액결제 drivers seat as its posture is significantly better than that of Lucent. Put simply, Lucent needs Alcatel much more.
But for Alcatel, a merger with Lucent could give the company additional publicity and a longtime network in America.
The offer if consummated may be the very first of many a lot more to come as struggling telecom companies look for methods to chop Price and compete a lot more effectively.
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