Alcatel-Lucent Is Not Worthless, $5.50 Price Target Is Feasible
Apr 22 2014, 3:05 | by Alcaraz Research | about: ALU
Alcatel-Lucent’s $5.50 price target from BMO Capital is proof that experts see strong upside potential in the company in spite of its recent losses.The low short float percentile hints the sell-side players see no compelling reason to attack Alcatel-Lucent. Recent 4G LTE contract wins helps the company meet its debt payments without refinancing.Superior technology keeps Alcatel-Lucent attractive to telecom companies. Alcatel-Lucent will not run out of contracts because it has market-leading CDN, SDN, NFV, ultra broadband, and LTE solutions.
Natixis and BMO Capital have upgraded Alcatel-Lucent (ALU) to BUY. BMO capital also gave ALU a new price target of $5.50. ALU has a 52-week high of $4.68. Elisa, Finland's biggest mobile services provider, just hired Alcatel-Lucent to upgrade its broadband network. Combes should be commended for stealing this deal away from Finland-based Nokia (NOK).
NTT Communications, the 32nd biggest company in Fortune Global 500 list in 2013, iscurrently considering Nuage Networks' Software Defined Networking (SDN) solutions. Numergy already selected Nuage Networks' SDN platform and routers for its data centers. China Mobile would not have granted a billion-dollar contract to Alcatel-Lucent if the company is worthless. This contract alone should be enough to cover the debt payments of ALU.
Alcatel-Lucent Has Market-Leading Technology in Fixed and Wireless Broadband
The geniuses at Alcatel-Lucent's Bell Labs have successfully tested the 400G Photonic Service Engine and 1830 Photonic Service Switch PSS. Alcatel-Lucent is at the forefront of Big Data infrastructure through 400G optical networking. The company proved that a single 400G signal is powerful enough to service 6.25 million voice calls from Toronto to New York.
The Ontario Research and Innovation Optical Network (ORION) helped ALU test the 400G optical network. ORION is the first to deploy 100G fiber optic networking in Canada. The 400G Photonic Service Engine will make Alcatel-Lucent a top choice among Big Data-centric companies. As shown by China Mobile's preference for ALU LTE solutions, Alcatel-Lucent is also poised to greatly benefit from the huge surge in global mobile internet traffic.
$5.50????? Heck ALU can't even get to $4.30 without imploding 33% in 3 days! No company loses 33% of its value in 3 days and can be called a winning stock. yeah, $5.50 is possible in 3 years from now. Who wants to wait that long?
You do realize 33% of 4.30 is ~$1.43, which would put the stock at ~$2.90 which never happened. Nothing close to that happened over a 3 day period. Keep lying though, maybe someone will eventually believe you.