"We see no compelling reason to accumulate" Alcatel-Lucent (ALU) shares, writes Nomura's Stuart...


"We see no compelling reason to accumulate" Alcatel-Lucent (ALU) shares, writes Nomura's Stuart Jeffrey after going over the telecom equipment firm's latest restructuring efforts. He thinks the moves are enough to produce a 5% adjusted op. margin by 2014, but expects Alcatel to continue bleeding cash until then, and that the company will need to successfully refinance its debt in the interim. (previous)

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  • rgperrin
    , contributor
    Comments (1566) | Send Message
     
    "[C]ompelling reason"? Can anyone think of any reason to accumulate even two shares of Titanic of stocks?
    10 Sep 2012, 07:03 PM Reply Like
  • tsb10530
    , contributor
    Comments (222) | Send Message
     
    Given ALU's track record, I wouldn't place much "stock" in this restructuring effort (no pun intended). Unless they implement drastic reductions in their debt and operating overhead, ALU will remain a penny stock....and that's if they're lucky!
    10 Sep 2012, 07:21 PM Reply Like
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