Shares of resurgent French-American communications company Alcatel-Lucent (NYSE:ALU) have been on quite the tear over the past year or so, rising more than 250%.
Rewind 12 months or so, and you'd find Alcatel-Lucent teetering on the edge of bankruptcy, as its cost structure simply wouldn't allow it to compete against some of its larger rivals in the ultra-competitive space. However, Alcatel-Lucent has since taken a number of decisive steps that have improved its position considerably.
For starters, Alcatel-Lucent arranged for a critical $2.1 billion in financing that was led by investment banks Credit Suisse and Goldman Sachs and helped it meet its short-term liquidity needs. Alcatel-Lucent also changed leadership and made some decisive strides to end unprofitable contracts and reduce overhead.
Is the stock still a buy? In this edition of our popular "Ask a Fool" series, tech and telecom analyst Andrew Tonner discusses whether he believes Alcatel-Lucent still looks like a buy today.
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