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In addition to Research In Motion, RBC's Mark Sue issued a critical note on Alcatel-Lucent (ALU...

In addition to Research In Motion, RBC's Mark Sue issued a critical note on Alcatel-Lucent (ALU -3.2%) today, downgrading shares to Underperform and setting a $1 PT. Alcatel's interest payments make it tough for the company to generate positive cash flow, he argues, and its optical and wireless share losses will be tough to reverse given carrier purchasing trends. Also bothering Sue is Alcatel's gross margin, which fell 530 bps Q/Q in Q1.
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Comments (4)
  • joetrx
    , contributor
    Comments (4) | Send Message
     
    i am a retired phamacist and played the market all my life in a very small way. I find it hatd to understand how an individual can predict the results off a future event be it in finance sports weather politics. There are as many finance experts who have hopes for ALU as there are those who have them going bankrupt...
    30 Apr 2012, 09:19 PM Reply Like
  • Chris Lau
    , contributor
    Comments (2926) | Send Message
     
    Of course gross margins fell. CDMA is declining rapidly and LTE/4G sales have yet to show itself. Company said it's happening in Q2. Who to believe, the analyst, or the company?
    30 Apr 2012, 09:25 PM Reply Like
  • craig thomas
    , contributor
    Comments (42) | Send Message
     
    March 14th BMO upgrades ALU to outperform and a $4 PT... April 11th Raymond James initiates coverage with a strong buy rating and a $4.50 PT....now we get a $1 PT from RBC.

     

    how you can have a spread of $1 to $4.50 is beyond me
    30 Apr 2012, 09:53 PM Reply Like
  • Tombaum eister
    , contributor
    Comments (195) | Send Message
     
    The best is Citi, they used to rate ALU as a buy with $5 target and then downgraded to sell with target $1.50. These same analysts recommend buying AAPL at $1000. I thin analysts should detail their research and show different scanarios and assumptions under which the share price would move differently.
    1 May 2012, 11:57 AM Reply Like
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