Shares of Alcatel (NYSE: ALU ) dropped hard on the day, falling 19% in an otherwise positive day for the stock market. The reason? Earlier today, Alcatel contributed to the flood of negative earnings preannouncements that have plagued the broader tech industry of late. The company indicated that it wouldn't hit quarterly expectations, and it retracted its previous operating margin goals for the full year. Reality has been a tough pill to swallow for Alcatel recently, as it fights a war on two fronts between aggresive competition out of Asia and a dampened telecom capital spending environment. In the following video, Brenton dives into the news in more detail, explains why he sees little reason for optimism regarding Alcatel shares, and cautions investors to avoid it for the foreseeable future.
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