Alcatel-Lucent: Time To Buy Or Flee?
By Sol Palha:Alcatel-Lucent (ALU), incorporated in 1898, based in Paris, is a diversified global manufacturer of telecom equipment with operations in over 130 countries. The company operates in three business segments: Networks, applications and services. It is the world's leading supplier of digital subscriber line equipment and is among the top leaders in telephone switching equipment, optical and data networking gear and communications software.
Some reasons to be bullish on Alcatel-Lucent (ALU):
- It is well positioned to benefit from the growing optics and IP markets. These two divisions currently represent 25% of the revenues generated from the total networks segment, and this figure is expected to move towards 30% by end of 2012.
- Surging growth in mobile broadband data traffic has increased the expenditure in wireless equipment spending in North America. This has pushed carriers to add capacity and upgrade 3G data networks, which in turn should lead to increased revenues from