Does China's 4G Boom Make Alcatel-Lucent a Buy Today?

The 4G wireless market in China is growing fast, and that creates opportunity for Alcatel-Lucent. Or does it? In this video, Andrew Tonner describes why he thinks Alcatel is on the outside looking in on this market. To be sure, Alcatel is in the midst of a turnaround, but China may not be a big part of its future. Andrew describes some of the problems Alcatel faces in the Chinese market and looks at the competitors that seem to be winning the 4G wireless battle.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 09, 2013, at 7:38 PM, rightislight wrote:

    Uh... one word. Huawei. You're better off in Vegas than you are putting money on ALU.

  • Report this Comment On March 10, 2013, at 10:22 AM, Edubrigham wrote:

    Let me guess rightislight, buy RAD. I dont get it. I really dont. You post on every single ALU article saying that its no good, that its heading for bankrupcy and that we should invest in RAD. Is because you are sour that you didnt buy ALU at 1$ and that you missed the 40% increase sonce then, or do you know something that we don't? Im curious!

  • Report this Comment On March 10, 2013, at 11:07 AM, NiceKeyz wrote:

    100GB router nuff said! lets see when i first started installing cable we offered 3MB now we are at 50MB bc of consumer demand everything connects to the internet! I'm long with ALU at 1.46 i will check back with you when my position doubles by Christmas they are taking the right steps towards rebounding!

  • Report this Comment On March 10, 2013, at 12:33 PM, SirOvidius wrote:

    Andrew seams to bash everything that have potential. As HPQ was at 12 and ALU at

    1 USD I asked his opinion about both.

    Didn´t realy need it ... was just curious

    what he says. Meanwhile both securities ultrapassed even his dreams of gains in

    3 months. I´m asking me this time .... Even if he

    is not recommending them but what the heck makes him bash this turnarround storys?

    It doesent look clean/accurate....thumb down!

  • Report this Comment On March 10, 2013, at 12:38 PM, SirOvidius wrote:

    By the way! Ericsson is not even represented

    in TD-LTE in China.

  • Report this Comment On March 10, 2013, at 2:32 PM, SyDVooh wrote:

    A core router 5X faster, and 60% more energy efficient, than any competitor's, and lightRadio. Plus a mountain of patents,the Lucent part of ALU was Bell Labs, and because of that it has a strong North American customer base. It operates in 139 countries and growing. Whatever market share they can get in China is just a plus.The French government has announced that they will be buying ALU shares. The stock is selling for not much more than book value. There have been a lot of big block trades. Funds appear to be showing interest. At its current price, ALU is possibly a take over target. So, why would any investor buy it now, especially buying it low? Go figure.

  • Report this Comment On March 11, 2013, at 9:27 AM, Robertlhayes wrote:

    China's new light radio station will be a large one is what I have read.I am trading alu and will buy more down here.the company employee stock plan is 3 euro's. and the two year plan to profitability works is how I see it.alu is #4 in cell phone sales over there and the new one touch star should add to the near quarters.New contracts sales news will help.cost savings go on and even with a imparement charge and sga down the alu stock price goes up.Book value is to hard to figure so I going with going concern value here or company employee stock plan( 3 euro).I am buying 1.50 calls jan 14 to trade short term and holding shares long for capital gains credit.I am making good money so far, but its slow.I started trading alu in Nov of 2012.

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