Right after the purchase of Nokia's telephone business by Microsoft was announced there was news that NOKIA will use the proceeds to acquire ALU. The ALU stock has steadily moved up from that date of announcement of Nokia's sale of handset business. May be that is coming to fruition. Lots of call activities and high volumes lately. Hope this is true to tha loyal holders of ALU
"... ALU stock has steadily moved up from that date of announcement ..."
ALU's stock has steadily moved up from the date of Mr Verwaayen's announcement of the Goldman loan and plan, which was designed to finish ALU's financial restructuring. We don't need NOK. If Combo boy does not screw up massively in what he was told to do on the cost-cutting end of the restructuring program, ALU can make the Euro 1.9 billion of EBITDA without the help of anyone, thus moving the PPS closer to $10. Combo boy better stick to Mr Verwaayen's Goldman plan and sell off the Submarine and Enterprise (at least the Voice part of it) businesses. Let's face it. Submarine will never come close to a 30% gross margin over an extended period of time. And the voice market, which is the dominant business of Enterprise, will become massively competitive.
samsung will be a surprise suiter for ALU's wireless division. they got deep pocket and ALU's presence complement nicely with their current contract portfolio. and galaxy phone can use some patent portfolio to fend off that fruity company.
They will have suitors, but they WILL NOT sell! They are only interested in getting rid of the business units that aren't in their future plans. ALU is strong enough now that they are better off on their own and that will give us Longs the best return!
A buyout would be a shortcut to a big jump - but the three to five year outlook with ALU continuing on with Combes Plan is THE BEST SCENARIO for us! By then, they will be Strong enough to be the One doing the buying out of a player or two who will be eating their dust!
There's also talk of other companies buying their wireless business. But, the news on deals witih China and S. Korea could also help bring this stock up and keep them near the top of major players. So, it's all good.