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"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)
Comments (2)
  • rgperrin
    , contributor
    Comments (716) | 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 (208) | 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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