Alcatel-Lucent
(NYSE:ALU) shares rose $0.38, or 2.78%, to $14.04 today after the
company indicated that its restructuring efforts remained on track. The
telecom equipment company announced an improving order book following
an intense effort in the first quarter to bring clarity to the
company's sales force and customer base. The news follows the company's
merger disruptions and costs.
Douglas McIntyre at 24/7 Wall St.
also suggested that the company could be a takeover target for Motorola
or Nortel. Why? Well, these new numbers suggest that ALU is either
taking business from these two rivals or the telecom equipment sector
is improving. Even if the latter is happening, any acquisition would
take some pressure off of MOT management to improve their handset
business. While this is a possibility, there is no reason to believe it
would happen at this point.
Overall, the Alcatel-Lucent is a
company that is quickly recovering through its restructuring efforts.
Meanwhile, its telecom equipment industry appears to be improving which
should also help the company's margins and growth. Combined, these
factors make ALU a
stock to watch over the next few months!
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