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Alcatel-Lucent Message Board

  • akptrades akptrades Aug 2, 2013 7:42 AM Flag

    Exane BNP Paribas analyst, Alexander Peterc

    Exane BNP Paribas analyst, Alexander Peterc, said in a note reported by Bloomberg: "Alcatel-Lucent is now a balance sheet story. This is a first signal to shareholders ahead of a significant dilution of equity holders. Asset disposals would, likewise, strongly diminish Alcatel's future cash generation."

    plus

    Reverse-splitting a stock has some other benefits, as well. There’s a lot of institutional money out there that can’t buy shares with face values below a certain threshold. Additionally, it can help tamp down volatility, since it’s much harder for algos and day traders to whip around big chunks of stock that go for, say, $150 a share rather than a buck-fifty a share.

    In the case of Alcatel-Lucent, if the company effected a 20-1 reverse split, a stock that has a nominal value of $1.20 would suddenly list at a respectable-sounding $24. The number of shares outstanding would shrink by a factor of 20, but — importantly — the market cap, fundamentals and prospects wouldn't change a whit.

    Still, it would sure look a lot better — and it could help with demand, too.

    Don't let pumpers fool you. This is a very real possibility.

    Sentiment: Sell

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    • You are not an ethical person.
      You are quoting from a report of Nov 20, 2012 and trying to pass it on as recent.

      “Responding to concerns over the rate of cash burn, CEO Ben Verwaayen said in a statement: "We are taking action to strengthen our balance sheet and we are reviewing a variety of options." Alcatel-Lucent clarified this later by saying this would include asset sales.

      Commenting on the progress being made on controlling expense, Verwaayen said: "We've done a good job on costs--we've promised ourselves that the cost structure of the company will be fundamentally changed and we're in the process of doing that," he told Bloomberg. "The speed of our cost cutting will also have an impact on our cash position."

      Exane BNP Paribas analyst, Alexander Peterc, said in a note reported by Bloomberg: "Alcatel-Lucent is now a balance sheet story. This is a first signal to shareholders ahead of a significant dilution of equity holders. Asset disposals would, likewise, strongly diminish Alcatel's future cash generation."

      Akptrades, are you so desperate that you cannot be honest?

    • Mobile networks congested by exponential data demand are being forced to speed up spend billions of dollars on accelerated capex expenditures for upgrades. LTE and HD video streaming exacerbate the problem. ALU has the world's fastest edge routers, VDSL2 vectoring and best products signal propagation enhancers for data optimized LTE frequencies. All are needed now to improve networks that will have download speeds that surpass current home broadband.

    • Analysts had mixed reviews of the plan. Exane BNP Paribas analyst Alexander Peterc told Reuters he was hoping for more emphasis on the future momentum of the business. "Alcatel-Lucent's plan includes more of the same on restructuring, and not enough of the new focus," he said.

      "This plan goes in the right direction, but I believe some elements of it are not aggressive enough," Bernstein Research analyst Pierre Ferragu told Reuters. He said Alcatel-Lucent's cost savings targets should have been higher, given the tough landscape for vendors.

      Sentiment: Sell

      • 1 Reply to akptrades
      • Despite investors' euphoria, the group's second-quarter results were marked by a net loss of 871 million euros caused by a writedown of its sub-scale wireless business.

        And Alcatel-Lucent consumed more cash - 248 million euros - in its operations than it generated, a perennial problem for the group.

        Alexandre Peterc, analyst at Exane BNP Paribas, said the quarterly results could lead to upgrades to consensus but cautioned that investors should avoid the risky stock.

        "Alcatel shares remain extremely risky and volatile," said Peterc in a note. "Though Q2 is good, beating consensus, cash is still worsening faster than anticipated."

        Sentiment: Sell

    • This statement has been raised before for Michel Combes to reply that he will not want a split.

      Sentiment: Strong Buy

    • Are you speaking about the Genius named Alexander Peterc, who told the Investors on June 20, 2013:

      The broker has lowered its recommendation on the telecoms equipment maker "Neutral" to "Underperform", reducing its price target to € 0.40 instead of € 0.60 before.

      Great Call Mr. Peterc.

      And by the Way, the Statement that you posted is from November 2, 2012. Cheap.

 
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