Lucent Technologies Inc. (NYSE/LU) can be a inventory that wants some important loving. This previous Wall Avenue darling has long been discarded because of the herd and it is now on the lookout for some adore on the Street. Trading at practically $80 in late 1999, the stock like many Some others inside the communications sector has long been beneath intense pressure recently, struggling with lackluster revenue growth and anemic gains.
Lucent http://edition.cnn.com/search/?text=소액결제 has also gone through its share of lawsuits. Despite some Restoration inside the communications sector, the world remains a challenging place to function. The competition is intense, pricing pressures are rising, and margins are low.
That may be the reality with the communications sector, a location that remains in limbo given The existing local weather. So what on earth is Lucent suppose to accomplish? Shareholders have shed tolerance in the flexibility of chairman and CEO Patricia File. Russo in turning all 소액결제정책 around the business and which makes it a star all over again.
Down ninety six% from its late 1999 significant, the fact is traders who bought at that amount or maybe decreased will probably never Recuperate their losses. Lucent won't ever be much more than a cash decline for the ones that acquired at the upper and inflated rates.
The company is earning money and its forward price tag-earnings numerous is acceptable, but given the gradual envisioned development the shares upside can be confined.
Offered the mixed outlook with the communications sector, Lucent is trying to obtain a major hug from rival in addition to troubled France-centered Alcatel SA (NYSE/ALA).
Lucent following being turned down already by Alcatel in 2001 is hoping this next try is achieved with hugs and kisses, something they like to do in France.
Alcatel is reviewing the opportunity merger with Lucent, but it is inside the drivers seat as its situation is significantly better than that of Lucent. To put it differently, Lucent wants Alcatel a lot more.
But for Alcatel, a merger with Lucent could give the corporation more publicity and a longtime network in The usa.
The deal if consummated may very well be the main of numerous additional to come as having difficulties telecom firms search for methods to cut Expense and compete a lot more efficiently.
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