Can Alcatel Sustain Its Rally in 2013?

In the following video, Fool analyst Andrew Tonner talks about Alcatel-Lucent (NYSE: ALU), and what investors can expect from the telecom stock in 2013.

After struggling for years, Alcatel is up 36.6% over the past month, reversing a bad year in which the stock had previously lost some 60% of its value. So, is Alcatel a buy? Andrew says not quite yet. But it's not a sell, either. With Alcatel in the midst of a cost-restructuring aimed at saving $1.5 billion, the company should see improved margins and other benefits from leaner operations.

But that doesn't change anything in the fundamental Alcatel story, Andrew says. Alcatel will still operate in a very competitive industry, competing not only with established rivals like Nokia (NYSE:NOK), but low-cost Asian providers as well.

So while things may be looking up in terms of operations, Alcatel still faces significant headwinds ahead in 2013. Andrew calls the stock a hold.

While telecom companies like Alcatel-Lucent operate in a competitive market where it's tough to shine, opportunities exist in the growing mobile market. There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


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  • Report this Comment On December 22, 2012, at 11:22 PM, serge9 wrote:

    Most likely Alcatel will Sustain Its Rally in 2013 and beyond

    Yes there is a fierce competition from well established provider Like Cisco, Nokia, Ericsson and from low cost Asian providers.

    But

    **AT&T announcement of increasing spending for a few years to come

    ** Sprint will be using Light Radio

    http://seekingalpha.com/news-article/3738081-sprint-to-lever...

    ** Telephonica will be using the new router

    ** Verizon is testing the 7950 XRS Router

    http://www.networkworld.com/news/2012/052212-verizon-looks-t...

    ** Monetizing Alu’s Patents

    ** Global IP Law Group Estimating Alu's Patents to be worth 5 Billions euro (6.5B$)

    Global IP Law Group, L.L.C., is a law firm concentrating in patent monetization, with a particular concentration in patent sales

    • Global IP is particularly experienced in the evaluation and monetization of large patent portfolios

    See no 3, Global IP Law Group’s Review and Valuations of

    Alcatel-Lucent’s Patent Portfolio at http://bit.ly/TgFhEn

    1 • Lenders Public Presentation

    2 • Lenders Information Memorandum

    3 • Global IP report

    ** Restructuring (fixed cost cutting) will reduce spending by 1.2 Billion/year

    Cutting fixed cost by 1.2 billion a years means no more cash burn

    ** selling non profit units and terminating loosing service contracts

    This also means no more cash burn

    By the way Telephonica will be using ALU new Core Router 7950 XRS, the Router that Cisco said that it is not a Core router

    If Cisco took the time and the effort to comment negatively on the 7950 XRS it may mean that this 7950 XRS is a winner and will take Market Share from Juniper and Cisco

    the market start to pay attention and ALu share price may reach its true value

    GS Deal has helped to establish ALU True value, but the French Gov. is looking for ways to help ALU get better financing deal with less interest rate and no Guarantees, the French Gov. has till Jan 30th 2013 to come up with a preposition

    any way, and any which way, the word has been spoken

    ALU has the Technology

    ALU is worth much much more than 1.00 a share

    and the Market realized it

    wait and see, the future is bright

    So, do not be surprised if Juniper, Cisco or others attempted to Buy Alu while it is trading below 2$

    Alu Future looks brighter

  • Report this Comment On December 25, 2012, at 10:29 AM, bh482 wrote:

    Serge,

    What's your price target going into 2013 for this stock?

Add your comment.

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