$ALU Could Be Headed for a Bounce
March 24th, 2010 at 8:33 am Posted by
Alcatel Lucent (NYSE: ALU) provides product offerings that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users.
Although $ALU was recently downgraded by Minyanville.com, it received a “a Neutral-from-Buy cut at Goldman Sachs, which views the company’s “long-term ability to generate cash as uncertain given aggressive competition in legacy products from Chinese vendors.”
Nevertheless, $ALU has a market cap of more than $7 billion and a PPS of around $3.20, which is 35% less than its 52 week high.
Yesterday morning, $ALU unveiled a set of solutions designed to enable service providers to introduce a wide array of new service offerings and deepen their connection with their subscribers. These solutions are said to deliver video, TV and multimedia content to any connected device, whether it’s a TV, laptop or mobile phone.
Since $ALU‘s acquisition of Velocix, a world leading provider of Digital Media Delivery Platforms, in 2009, the company has been working to capitalize on the Velocix Digital Media Platform, which includes five appliance types—content publishing, storage, delivery, routing and utility.
In addition, LGS Innovations, a U.S. government subsidiary of $ALU, announced the successful completion of a joint solution that improves internet security and allows government agencies to meet their mandate to use DNS Security Extensions (DNSSEC).
If you take a look at the big picture, $ALU has operations in more than 130 countries, is a multi-billion dollar company and has affiliations with the U.S. government.
$ALU considers themselves “a local partner with a global reach” and, at these levels, The Dean sees this stock as not only within reach but also heading for a bounce.
