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Cash-burning Alcatel-Lucent (ALU +1.1%) edges higher after announcing a big management shakeup....

Cash-burning Alcatel-Lucent (ALU +1.1%) edges higher after announcing a big management shakeup. Among other things, CFO Paul Tufano will now also be Alcatel's COO, Americas chief Robert Vrji has been named head of global sales, and Networks chief Philippe Kreyer is now president of Networks & Platforms, a new division that covers Alcatel's service provider solutions. Also, Alcatel plans to cut the size of its management committee nearly in half. (PR) (previous)
Comments (11)
  • mdesilvio
    , contributor
    Comments (78) | Send Message
     
    classic distraction; this is just moving jello around the plate...new infusion of talent with vision may be the best remedy for what ails ALU.
    10 Sep 2012, 01:26 PM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (508) | Send Message
     
    This reminds me of an old management joke -

     

    A new CEO comes on board and in a discussion with the outgoing CEO, the departing CEO hands the new CEO 3 envelopes and suggests opening them one at a time when things get rough.

     

    After a few quarters the board is getting restless, so the new CEO opens the first envelop, it reads: "blame previous management"

     

    After a couple more tough quarters the new CEO decides to open envelop number 2 and it reads: "reorganize"

     

    The CEO continues to get increasing pressure from the board and he's at a loss as to what to do, so he opens the 3rd envelop, it reads:

     

    "Prepare three envelops"

     

    I think Ben is at that stage, don't you ?
    10 Sep 2012, 01:37 PM Reply Like
  • mdesilvio
    , contributor
    Comments (78) | Send Message
     
    totally applicable with ALU (and Lucent prior to acquisition - see how well that went)
    10 Sep 2012, 01:43 PM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (508) | Send Message
     
    Different subject, but staying on ALU

     

    Why haven't they reverse split ?

     

    Seems a little silly looking at a dollar stock

     

    On the other hand, at 13M daily average share trading volume, only .4% trade hands daily. That doesn't seem like a lot of volume for a stock in trouble.
    10 Sep 2012, 01:39 PM Reply Like
  • obieephyhm
    , contributor
    Comments (1558) | Send Message
     
    my guess would be that they've never had much of institutional following and lost what little they had when the stock dove under $5.00. so there isn't anyone to pressure them to do so and it would rob the entrenched management of more ways to rape the company as they preside over their own titanic-like performance.

     

    but, that's just me . . . .
    10 Sep 2012, 02:35 PM Reply Like
  • serge9
    , contributor
    Comments (244) | Send Message
     
    reverse split did not done do any good for Lucent or Nortel or BCE
    management have to get serious about stopping the cash burn,
    get ride of all (employees who are paid to do nothing)
    keep business that are making money
    get ride of business that are loosing money
    10 Sep 2012, 02:35 PM Reply Like
  • milehr
    , contributor
    Comments (475) | Send Message
     
    Rearranging chairs.
    10 Sep 2012, 03:19 PM Reply Like
  • skier43
    , contributor
    Comments (2) | Send Message
     
    Same words, same music! If all the past layoffs and reorganizations didn't work what makes them think this is any different. They are compelled to make the same mistakes over and over again.
    10 Sep 2012, 06:57 PM Reply Like
  • obieephyhm
    , contributor
    Comments (1558) | Send Message
     
    and the definition of insanity is . . . .?
    10 Sep 2012, 08:38 PM Reply Like
  • Lpin
    , contributor
    Comment (1) | Send Message
     
    Guys,

     

    Ben has been doing a lot of effort. he has moved out products that didn't perform, he has reorganized before, he has reduced middle management...

     

    what he did not do so far is as EU for help like in the solar business: Huawei with the "help" of the Chinese government is giving these products away almost for free.
    11 Sep 2012, 08:53 AM Reply Like
  • obieephyhm
    , contributor
    Comments (1558) | Send Message
     
    and produced . . . . nothing substantial or lasting . . . benny did NOT however, cut management pay, cut his own salary, refuse to take bonus payments anywhere along the line.

     

    it's so exciting watching them do exactly the same thing that they've done before . . . . and, yet, there are a host of you who seem to expect different results . . .
    11 Sep 2012, 11:48 AM Reply Like
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