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Alcatel-Lucent Message Board

  • zee33344 zee33344 Feb 9, 2013 3:27 PM Flag

    My take on Ben V's forced resignation.

    My assumption is Ben is probably a decent man but has bought into the socialist ideology. He is a believer in global warming aka climate change and he is hesitant to cut jobs thinking everybody is entitled to earn a living. Hopefully the board will retain a free market thinking guy who understands this is a business and it's all about making money. Perhaps relocate from France and cut some more unnecessary jobs. From what I read (I'm no expert) the technology is amazing and the patents are extremely valuable. A good capitalist thinking CEO can turn this into a huge winner for everyone especially now that there is a stable base of reserve capital. Right or wrong, I'm holding on for a big pay day.

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    • I feel the same and I am holding long as well for A Great Pay Day as well$$$$$$$$$$$$$

      Sentiment: Strong Buy

    • I wouldn't characterize him in those terms exactly. He was cutting jobs and expenses and did have the boards support in mid year 2012 for his plan. Instead i think he was perceived as not moving fast enough and ultimately as 2012 turned into more losses in Q3 I think his plan was viewed as not going far enough. And that's true because this plan was based on the 2nd half being better than it was. What he then did was to turn around and borrow more money and essentially mortgage ALU's future with it's key assets. I think a case of nervousness developed among some board members as to whether him doing that combined with a plan that is borderline was simply going to be enough and especially now given that shareholders were being asked to wait another year for this to be completed. I think that ultimately those loans though made the board feel they now had more time in which to act and decided he should be a part of the restructuring as well. I also think it was mutual and he was a part of that belief as well in that he just wasn't going to be the one to finish this job.
      He knows it has to now be more aggressive and more like what NSN has done. I think Ben would have gotten there as well although in more careful steps..adding to the plan in mid year.

      I think before the loans were secured..Ben was the right person to keep because we had to move quickly and to have looked for someone else could have delayed things to the point of some real problems developing. The loans have given some breathing room and so I feel somewhat different now in that maybe it is best to bring someone else in.

      That's not without risks though. The time to accomplish this plus the unknowns of what they will do. I think they will be asked to be much more aggressive and when this is done we'll see much more a restructuring like NSN's has been with thousands more let go.

      Think of it this way. What Ben was doing was a remodeling job. The board wants the house taken down and rebuilt. PROBABLY..in the end...the latter will be better and better for shareholders because this company simply has 25k too many people. Their revenue per employee is horrible and the worst in the industry. Their operations are too expansive and they're trying to be everything to everyone. Bens plan was going to get us back to break even on cash flow and maybe 30 cents EPS. That's not enough for the board at this point. Just like a family always living on the edge i think they're tired of ALU operating in that manner..always borderline. Look at the last year..while other companies suffered..we suffered more.

      I think ALU is even more of a strong buy...but there's also more speculation involved in that call as well. Because of the massive changes and what i think will be even more massive cuts coming.

      ~TS
      jmho

      Sentiment: Strong Buy

    • Booted from the cac 40 and an original member meant no job for you ben

      Sentiment: Strong Buy

    • Excellent post......you are very smart

 
ALU
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