Alcatel-Lucent (ALU) Message Board

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Technology Stocks : Alcatel-Lucent (ALU)

ALU 3.460

0.0%

Mar 3 4:00 PM EST

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To: Sidney Reilly who wrote (92)	11/11/2011 10:09:11 AM
From: Sam	Read Replies (1) of 176

They just sold one of their higher margin businesses that is a steady grower in return for cash, but couldn't sell their legacy business that is low margin, isn't growing and has a lot of future pension liabilities. Plus they can just fire workers, the business is in France. And their cash flow is still negative, a lot of people expected them to be positive by now. So they are kind of stuck in a hard place. The game isn't over, IMHO, though, they have to make some tough decisions to cut over the next 6 months, without hurting the future. They have to somehow jettison their legacy business. I would guess spin it off, or spin off their more promising businesses. I think there is still the potential for good profit here, although so far it has been a dismal investment to say the least. The only saving grace for me is that I didn't put a lot of money into it.

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