Lucent Technologies Inc. (NYSE/LU) is often a inventory that requires some major loving. This previous Wall Road darling has been discarded with the herd which is now in search of some adore on the Street. Investing at almost $eighty in late 1999, the stock like quite a few Other folks while in the communications sector is below extreme pressure in recent times, struggling with lackluster revenue growth and anemic earnings.
Lucent has also gone through its share of lawsuits. Regardless of some Restoration during the communications sector, the realm remains a tricky position to operate. The Opposition is intense, pricing pressures are developing, and margins are reduced.
That may be the truth with the communications sector, an area that remains in website limbo specified the current climate. So what's Lucent suppose to complete? Shareholders have misplaced persistence in the ability of chairman and CEO Patricia File. Russo in turning close to the corporate and which makes it a star once more.
Down 96% from its late 1999 higher, the fact is traders who purchased at that amount or perhaps decreased will most likely never ever Get better their losses. Lucent will never be greater than a cash loss for those that obtained at the upper and inflated prices.
The organization is building cash and its ahead price-earnings many is reasonable, but presented the sluggish expected development http://edition.cnn.com/search/?text=소액결제 the stocks upside may be constrained.
Given the mixed outlook for the communications sector, Lucent is attempting to obtain a major hug from rival and also troubled France-dependent Alcatel SA (NYSE/ALA).
Lucent following becoming turned down currently by Alcatel in 2001 is hoping this next endeavor is satisfied with hugs and kisses, some thing they like to do in France.
Alcatel is reviewing the likely merger with Lucent, however it is inside the motorists seat as its place is far better than that of Lucent. Quite simply, Lucent desires Alcatel a lot more.
But for Alcatel, a merger with Lucent could give the organization additional publicity and an established network in America.
The offer if consummated might be the main of numerous far more to come as battling telecom companies seem for methods to cut cost and contend extra successfully.
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