Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



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

Shares of resurgent French-American communications company Alcatel-Lucent (UNKNOWN: ALU.DL  ) 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.

Finding the next great growth stock
Motley Fool co-founder David Gardner, founder of the world's No. 1 growth-stock newsletter, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, with you! It's a special 100% free report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains, and click here for instant access to a whole new game plan of stock picks to help power your portfolio.

Read/Post Comments (3) | Recommend This Article (2)

Comments from our Foolish Readers

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 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.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2690715, ~/Articles/ArticleHandler.aspx, 9/28/2016 4:50:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

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