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Technology Stocks : Alcatel (ALA) and France

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To: Steve Fancy who wrote (886)10/1/1999 8:50:00 PM
From: Jay Nitschke  Read Replies (2) of 3891
 
For the benefit of GCTI owners (including myself), would someone be so kind as to point out reasons we might like to take ALA stock (as opposed to selling before the merger). My limited analysis makes me think taking the cash and investing it elsewhere may be the best idea.

ALA's revenues and stock price have been virtually unchanged in the last six years (with the exception of that brief stock run-up in 1998). It has made several large acquisitions, but how well they will integrate into the company remains in doubt. Analysts are unimpressed, the median rating in one survey I saw was hold. (Of course, many times analyst sentiment can be a contra indicator, though with the long term growth looking so weak over the past years, I tend to believe it in this case.)

Thanks in advance. I realize SI posters are generally bullish, so don't take these comments as an insult, just try to make a good case for hanging on to the ALA shares (since I'd rather not pay the capital gains tax).

Jay
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