Lucent Wants Some Supportive

SEnuke: Ready for action

Lucent Technologies Inc. (NYSE/LU) is an investment that needs some important supportive. That former Wall Street darling is discarded by the herd and is now trying to find some love around the Street. Trading at not quite $80 in late 1999, the inventory like many others in the communications sector is under severe pressure lately, facing anemic profits and poor revenue growth.

Lucent has also experienced its share of lawsuits. Despite some recovery in-the communications industry, the location remains a hard spot to perform. Your competition is fierce, pricing demands are developing, and margins are low.

That is the fact for the communications sector, an area that remains in limbo given the current climate. What exactly is Lucent assume to complete? Shareholders have lost patience in the ability of chairman and CEO Patricia F. Russo in turning across the business and which makes it a star again.

Down 96-page from its late 1999 high, the stark reality is people who bought at that stage if not lower will likely never recover their losses. Lucent will never become more than a capital loss for all those that acquired at the higher and inflated prices. Telus Offers Alcatel A30 For $0 Upfront includes more about when to consider it.

The company is making money and its forward price-earnings multiple is reasonable, but given the slow estimated growth the stocks benefit might be limited.

Given the prospect for the communications field, Lucent is trying to obtain a major hug from rival and also struggling France-based Alcatel SA (NYSE/ALA).

Lucent after being rejected currently by Alcatel in 2001 is wanting this 2nd attempt is met with hugs and kisses, some thing they like to do in France. Http://Business.Sweetwaterreporter.Com/Sweetwaterreporter/News/Read/37388727/Telus Offers Alcatel A30 For $0 Upfront includes more about the meaning behind this hypothesis.

Alcatel is reviewing the potential merger with Lucent, but it is in-the drivers seat as its place is much better than that of Lucent. Put simply, Lucent needs Alcatel more.

But also for Alcatel, a merger with Lucent can give the company more publicity and an existing community within the United States.

The offer if consummated may be the first of many more to come as struggling telecom organizations search for ways to reduce cost and compete more effectively.

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