Lucent Technologies Inc. (NYSE/LU) is really a inventory that requires some main loving. This previous Wall Avenue darling has long been discarded with the herd and is particularly now looking for some really like on the road. Investing at approximately $eighty in late 1999, the stock like numerous Some others inside the communications sector has long been below extreme stress lately, struggling with lackluster profits 신용카드현금화 advancement and anemic profits.
Lucent has also passed through its share of lawsuits. Inspite of some recovery inside the communications sector, the world continues to be a difficult area to http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 operate. The competition is intense, pricing pressures are rising, and margins are very low.
That's the truth for the communications sector, a place That continues to be in limbo given The present local weather. So exactly what is Lucent suppose to try and do? Shareholders have missing patience in the flexibility of chairman and CEO Patricia F. Russo in turning all over the organization and making it a star once again.
Down ninety six% from its late 1999 high, the fact is buyers who acquired at that stage or even lower will probably hardly ever recover their losses. Lucent won't ever be greater than a cash reduction for those who bought at the higher and inflated costs.
The organization is producing income and its forward selling price-earnings various is affordable, but supplied the slow envisioned expansion the stocks upside might be confined.
Presented the blended outlook for that communications sector, Lucent is attempting to obtain a main hug from rival and in addition troubled France-primarily based Alcatel SA (NYSE/ALA).
Lucent right after being turned down currently by Alcatel in 2001 is hoping this next try is achieved with hugs and kisses, anything they like to do in France.
Alcatel is examining the probable merger with Lucent, but it is in the drivers seat as its place is significantly better than that of Lucent. In other words, Lucent desires Alcatel additional.
But for Alcatel, a merger with Lucent could give the corporation additional exposure and an established community in The usa.
The offer if consummated may very well be the first of numerous far more to return as having difficulties telecom corporations look for tactics to cut Price tag and compete extra proficiently.
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