Some weekend fun, and appropriate given the recent research note on Alcatel-Lucent (ALU). From Goldman Sach’s Tim Boddy, who asserts that Lucatel’s revenues are in “Free-Fall”:
Our buy on Alcatel-Lucent was predicated on bigger and faster cost-cutting momentum than investors expected, combined with a stable top-line outlook. While management has increased cost-cutting targets, we greatly under-estimated both the scale of revenue dis-synergies and the impact on sales from the internal confusion created by the merger. Worryingly, it appears that this confusion is taking longer to resolve that the company anticipated.
I’m not a fan of Cramer’s show, but a quick search of YouTube for Lucent turned up this gem from last year.
Hat tip: Tech Trader Daily for the GS note. And I wasted 30 min on YouTube on a perfectly good Fri night. Try searching for ‘Cisco’ or ‘Nortel’ too. I do not own any ALU.