Lucent Technologies Inc. (NYSE/LU) can be a inventory that desires some significant loving. This former Wall Road darling continues to be discarded because of the herd and is also now in 소액결제현금화 search of some love on the Street. Trading at just about $80 in late 1999, the stock like many Other folks inside the communications sector has long been less than severe pressure in recent times, dealing with lackluster revenue growth and anemic income.
Lucent has also passed through its share of lawsuits. Irrespective of some Restoration in the communications sector, the realm continues to be a tricky position to work. The Level of competition is fierce, pricing pressures are developing, and margins are reduced.
That is definitely the fact with the communications sector, a place That is still in limbo given The present local climate. So what exactly is Lucent suppose to do? Shareholders have dropped persistence in the flexibility of chairman and CEO Patricia F. Russo in turning close to the corporate and making it a star all over again.
Down 96% from its late 1999 higher, the truth is buyers who acquired at that level or simply decrease will probably hardly ever Get well their losses. Lucent will never be more than a capital loss for people who purchased at the higher and inflated costs.
The corporation is producing cash and its ahead price tag-earnings a number of is realistic, but given the gradual anticipated expansion the stocks upside may be constrained.
Specified the mixed outlook for your communications sector, Lucent is attempting to secure a major hug from rival and likewise troubled France-based mostly Alcatel SA (NYSE/ALA).
Lucent following currently being turned down currently by Alcatel in 2001 is hoping this next endeavor is satisfied with hugs and kisses, some thing they love to do in France. http://www.bbc.co.uk/search?q=소액결제
Alcatel is reviewing the possible merger with Lucent, however it is within the motorists seat as its position is significantly better than that of Lucent. To paraphrase, Lucent requirements Alcatel more.
But for Alcatel, a merger with Lucent could give the company much more exposure and a longtime community in The usa.
The offer if consummated might be the 1st of numerous extra to come as struggling telecom firms search for ways to chop cost and compete far more proficiently.
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