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Ericsson, Alcatel-Lucent rise following Nokia deal

  • Ericsson (ERIC) and Alcatel-Lucent (ALU) jump sharply following news that Nokia (NOK) is selling its handset unit to Microsoft, leaving the Finnish company to focus on its telecom-equipment division NSN, among other things. Could industry consolidation be on the cards?
  • As SA auther Jacob Steinberg notes, the deal will leave Nokia with a cash mountain of almost $20B. That would theoretically be more than enough to buy Alcatel-Lucent, whose market cap is just $5.86B.
  • Ericsson is +3.9% in Stockholm and ALU is +11.2% premarket in the U.S.
Comments (17)
  • DeepValueLover
    , contributor
    Comments (8134) | Send Message
     
    But when I said this is what Nokia should do everyone laughed...

     

    Oh well...congrats to all of us longs who never lost faith. :)
    3 Sep 2013, 05:35 AM Reply Like
  • CMCGMC
    , contributor
    Comments (5) | Send Message
     
    The reason why Ericsson and ALU are up is just beyond me...
    3 Sep 2013, 08:48 AM Reply Like
  • MacCBOE
    , contributor
    Comments (32) | Send Message
     
    NOK spending their $ to buy ALU is throwing good money after bad. ALU is junk.
    3 Sep 2013, 01:42 PM Reply Like
  • BruceLee1984
    , contributor
    Comments (500) | Send Message
     
    Really Mac? ALU's share price this year says otherwise.....They have improved there financial performance and reduced debt and are refocusing on there better more profitable business like Nokia, your comment is junk.
    3 Sep 2013, 02:01 PM Reply Like
  • MysteryGuest
    , contributor
    Comments (12) | Send Message
     
    Ha. Why would Nokia want to buy ALU? You say to get more business in the US? They will get that for free once ALU goes under. A little patience is all that is needed there (and not much with the current state of ALU)...
    3 Sep 2013, 04:43 PM Reply Like
  • jessten
    , contributor
    Comments (18) | Send Message
     
    Do a little research on ALU and it's potential you'll be glad you did!
    3 Sep 2013, 05:59 PM Reply Like
  • BruceLee1984
    , contributor
    Comments (500) | Send Message
     
    I never met more stupid shareholders then what and currently Nokia has.
    3 Sep 2013, 11:53 PM Reply Like
  • Patentfox
    , contributor
    Comment (1) | Send Message
     
    Check out the current patent positions of ALU. It's very well positioned in its technologies. It has more latent value than the market would indicate. It is under valued!!
    3 Sep 2013, 08:36 PM Reply Like
  • sidiji
    , contributor
    Comments (144) | Send Message
     
    I don't think Nokia interested in ALU. It is trying to grow NSN organically. Nokia is become very very conservative after its near death experience. Unless it is given something very cheaply like the other half of NSN, it will now try to build up its cash horde
    3 Sep 2013, 09:30 PM Reply Like
  • BruceLee1984
    , contributor
    Comments (500) | Send Message
     
    The company is not NSN anymore so why are you saying there trying to grow NSN organically?
    3 Sep 2013, 11:52 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8134) | Send Message
     
    Nokia should buy BBRY's secure networking business.
    3 Sep 2013, 10:07 PM Reply Like
  • MacCBOE
    , contributor
    Comments (32) | Send Message
     
    Bruce, I am actually LONG 500 shares of ALU that I picked up for 1.30 on 09/17/12. So its not like I'm an unhappy camper or feel like I've been burned by the stock. But ALU has gone thru more restructuring, more near-death experiences that any other company I have followed since the old LTV steel. But just because they have performed well of late does not make them a great turn-around candidate. LTV, too - was a great little trading stock on the floor - we made markets in it and took lots of $ out it from the high volume traders, bleeding eighths and quarters of of her . . . It is all called the psychology of the marketplace, and oft times we all place bets on the mob madness running up a junk stock or tanking a good stock. I just don't expect much from ALU, that is all. And I certainly never have trusted nor had much confidence in their French Government shareholders . . . how many times can you count, Bruce - the accounting irregularities and restatements thru the years?

     

    I mean, I'm just sayin' . . . besides, I doubt the Frenchies would let ALU go to the Finns - "a valuable French asset !" they will proclaim ! Ha ha - nor do I seriously think NOK has any interest in ALU. The simple fact of the matter is that the vast majority of ALU's "valuable patents" are so old as to carry merely STUB value that dates back to the old Bell Labs / Lucent / Ma Bell days. Not much there for a tech titan like NOK to use today, I would venture. Just my opinion is all. Marketplace is full of 'em, as we all know. . .
    4 Sep 2013, 03:18 AM Reply Like
  • BruceLee1984
    , contributor
    Comments (500) | Send Message
     
    I Know exactly what your saying your talking to someone who has owned this stock since 2007 when Russo and Thrucuck were in charge. But Combes and the new CFO Raby are a different breed. There not just cutting cost, there transforming the company with the new plan the shift plan and focusing on ALU's strengths like IP. Sure there may be a few ugly surprises and bad quarters because the company said the plan wot be done before 2015. However the market and investors seem to really like what Combes has done, just look at the stock price when he took over it was 1.35 its now 3.04 he has been reducing debt, transforming ALU product lines, cutting employees, etc....something Verwaayen pretty much avoided, lets give this management team (new management team) a chance, I do agree though if they cant get there house in order by sometime in early 2015 then its something to worry about. Also a point to be made they have paid off and re-financed a lot of there debt and I think they only have 500 million euros due up till 2016, so now the company can really focus, so lets just hope for the best, and glad to see your still holding your shares sir.
    4 Sep 2013, 10:50 PM Reply Like
  • aleton
    , contributor
    Comment (1) | Send Message
     
    I thought as well Nokia could buy ALU... but thinking that NSN is just coming out from a painful merger, I doubt they want to restart everything again!
    maybe the can acquire just some part of ALU, like they did with motorola....
    4 Sep 2013, 08:51 AM Reply Like
  • MacCBOE
    , contributor
    Comments (32) | Send Message
     
    You make some very valid points, Mr. BruceLee. I sit corrected, and shall re-appraise my thinking after I further study the points you have made. Thank you. Never too old to learn, sir :)
    5 Sep 2013, 01:37 AM Reply Like
  • BruceLee1984
    , contributor
    Comments (500) | Send Message
     
    ALU stock keeps rising!
    11 Sep 2013, 03:38 AM Reply Like
  • MacCBOE
    , contributor
    Comments (32) | Send Message
     
    but I still doubt NOK has any interest in ALU....
    5 Sep 2013, 01:38 AM Reply Like
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