Ask a Fool: Is Alcatel-Lucent Still a Buy?

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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Comments from our Foolish Readers

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  • Report this Comment On October 20, 2013, at 8:50 AM, bluesky64 wrote:


    I agree the the chart moves don't give clear value to the price of ALU. I think your completely wrong about ALU. ALU is a very strong buy. Motley Fools been very wrong many times for example RAD. $ 5.30

    Both RAD and ALU Dec 2012 $ basically .95. Both have been doing the same thing restructuring Debt closing unprofitable operations reducing overhead (laying offs ). RAD has 13 analyst now back in Dec 2012 8 analyst most were Strong Sell Now 13 from hold to strong buy with institutional holding around 29% Now RAD has over 60% institutional holdings ALU back Dec. 2012 had 13 strong sells now 16 with mainly hold to buy. institutional holding of less than 7% now over 15% with this kind of attention ALU soon will be over $5.50 as the price target is Shown on the point and figure charts. * Analyst coverage can be confirmed at Jaywalk Consensus

  • Report this Comment On October 20, 2013, at 10:26 PM, goldman2too wrote:

    Yep ridiculous these so called expert assessments but, of course, I can't say that as my comment will be deleted as we wouldn't want to hurt their feelings for these characters.

  • Report this Comment On October 20, 2013, at 10:40 PM, goldman2too wrote:

    It would be nice for them to track with real metrics how they have done on their recommendations and fire them when they can't beat a 50/50 guessing level or compete against a monkey throwing darts at cards with recommnded picks on them.

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Related Tickers

12/31/1969 7:00 PM
ALU $0.00 Down +0.00 +0.00%
Alcatel-Lucent CAPS Rating: ****