Lucent Systems Inc. (NYSE/LU) is a inventory that needs some main loving. This former Wall Street darling has become discarded with the herd and it is now looking for some really like on the road. Trading at nearly $80 in late 1999, the stock like quite a few Other folks from the communications sector has long been beneath serious strain lately, struggling with lackluster income advancement and anemic gains.
Lucent has also gone through its share of lawsuits. Even with some http://www.thefreedictionary.com/소액결제 recovery from the communications sector, the area remains a complicated position to function. The Levels of competition is intense, pricing pressures are developing, and margins are small.
That is the reality for your communications sector, an area that remains in limbo presented The existing local weather. So exactly what is Lucent suppose to complete? Shareholders have misplaced tolerance in the ability of chairman and CEO Patricia F. Russo in turning all over the business and which makes it a star once more.
Down ninety six% from its late 1999 higher, the fact is traders who purchased at that amount or maybe decrease will probably by no means Recuperate their losses. Lucent will never be more than a cash reduction for the ones that obtained at the higher and inflated costs.
The business is earning dollars and its ahead price tag-earnings multiple is sensible, but specified the gradual envisioned expansion the stocks upside could be confined.
Provided the mixed outlook for the communications sector, Lucent is trying to acquire a key hug from rival and in addition troubled 소액결제정책 France-primarily based Alcatel SA (NYSE/ALA).
Lucent soon after getting turned down now by Alcatel in 2001 is hoping this next attempt is fulfilled with hugs and kisses, one thing they love to do in France.
Alcatel is examining the likely merger with Lucent, but it is during the motorists seat as its position is much better than that of Lucent. In other words, Lucent wants Alcatel more.
But for Alcatel, a merger with Lucent could give the corporation additional publicity and an established network in America.
The deal if consummated may be the 1st of many additional to return as having difficulties telecom corporations look for ways to cut Price and contend more successfully.
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