You win some, you lose some. That's how shareholders of Alcatel-Lucent
On the heels of landing a major supplier contract for AT&T's
The stock tumbled by 12% on Thursday on a generally positive market day. Rivals like LM Ericsson
Alcatel's stock is still up a market-beating 60% over the last year, but down by a soul-crushing 78% in the past five. It's enough of a thrill ride to make Spider-Man reach for the antacids. I recount the recent history of Alcatel-Lucent to my kids every Halloween. (OK, I don't. That would just be cruel.)
It takes a daring investor indeed to jump aboard this bandwagon, and a two-star CAPS rating hardly inspires confidence, either. But the global market for next-generation wireless network equipment represents enough of an opportunity to outweigh weakness in other sectors, and the AT&T deal proves that Alcatel has what it takes to land those crucial contracts.
So I think that yesterday's drop could be a fine buy-in opportunity. AT&T and Verizon
That's my two cents. What do you think?