Investopedia: If Alcatel Can Keep This Up, The Turnaround Can Work

These are still very early days, but if the second quarter is any sign, Alcatel-Lucent's (NYSE:ALU) latest restructuring efforts may bring this company (and stock) back into relevancy. There is still plenty than can go wrong, but the carrier spending environment is looking better by the month, and will likely put some significant tailwinds into Alcatel's sales. While I definitely missed out on the early jump in these shares, a pathway to $3.50 (or higher) for the shares is at least worth talking about today.

Please continue here:
http://www.investopedia.com/stock-analysis/073113/if-alcatel-can-keep-turnaround-can-work-alu-cien-csco-jnpr.aspx

Investopedia: Nokia Buys Out Siemens, Are Phones Now On The Block?

There was never really a question as to if Nokia (NYSE:NOK) and Siemens (NYSE:SI) would unwind their 50/50 partnership in Nokia Siemens Networks. Siemens had made it quite clear that they were considering all options for monetizing their stake and continuing their own plan to streamline operations. What's more, it was becoming increasingly clear that there was minimal third-party interest and that going the IPO route wasn't likely to realize full value. Curiously, though, Siemens has chosen to sell its stake in the venture to Nokia at a pretty undemanding valuation.

Please continue here:
http://www.investopedia.com/stock-analysis/070213/nokia-buys-out-siemens-are-phones-now-block-nok-si-eric-msft.aspx

Investopedia: Alcatel-Lucent Looking At Long Road, But Not Starting From Scratch

To get a sense of just how badly wrong the Alcatel-Lucent (NYSE:ALU) story has gone, consider that the combined company has never produced a full year of positive free cash flow since the 2006 merger. What's more, while the company still has very relevant share in areas like edge routing, rivals like Ciena (Nasdaq:CIEN), Huawei, and ZTE have been taking share, while companies like Nokia Siemens Networks get their acts together.

That's all pretty well known, though, and part of the reason the stock sits below $1.50 today. With a new CEO, new products, and new market opportunities, perhaps Alcatel-Lucent has new life to offer shareholders.

Please follow this link for more:
http://www.investopedia.com/stock-analysis/042913/alcatellucent-looking-long-road-not-starting-scratch-alu-cien-csco-jnpr-eric.aspx

Investopedia: Oracle Dials It Up In Telecom

Oracle (Nasdaq:ORCL) doesn't do things halfway, and when the company announced its acquisition of Acme Packet (Nasdaq:APKT) it looked like only the beginning of the company's strategy to exploit the large telecom vertical. Now we know that the company really is serious, as it has followed the Acme Packet deal with an announcement that it intends to acquire networking vendor Tekelec from its private equity owners.

A Complimentary Deal With Interesting IP Ramifications
Right off the bat, acquiring Tekelec makes quite a bit of sense. Tekelec is a telecom equipment vendor that specializes in products that handle mobile traffic. In particular, the company focuses on areas like network signaling, policy control, and subscriber data management. Combined with Acme Packet's network control products/technology, Oracle will offer a cohesive hardware/software line-up in network control for large carrier customers like Verizon (NYSE:VZ) and AT&T (NYSE:T).

Please continue here:
http://www.investopedia.com/stock-analysis/032713/oracle-dials-it-telecom-orcl-ffiv-apkt-eric-vz.aspx

Seeking Alpha: Alcatel-Lucent - The Rope Is Getting Tighter

When I last wrote on Alcatel-Lucent (ALU) a quarter ago, longs certainly didn't appreciate my skepticism on this company's near-term prospects. Nevertheless, the stock has dropped almost another 40% since then, and now questions are popping up regarding whether the company can cut enough costs to remain a viable contender.

Please click here for more:
Alcatel-Lucent - The Rope Is Getting Tighter

Seeking Alpha: Can Nokia Pull Out Of Its Death Spiral?

Simply put, Nokia (NOK) is a mess. Where once this was the world's best cell phone maker and the owner of a high-quality balance sheet, now the company is struggling to stay relevant and stem the loss of market share to Apple (AAPL) and Samsung (SSNLF.PK). Although the company's feature phone business in North America looks as though its in shambles, the company does have enough liquidity and time to make what may be a last stand around its Microsoft (MSFT) Windows-powered Lumia.

Please follow this link for the full article:
Can Nokia Pull Out Of Its Death Spiral?

Seeking Alpha: Powerwave May Fade To Black

Wireless equipment maker Powerwave (PWAV) has given its investors quite the thrill ride over the last four years, but the latest dive may have investors and analysts wondering if this company can ever achieve a sustainable base of business. Bad quarters happen to every company eventually, but very few established companies miss their revenue target by 50% and investors should ask themselves whether the sizable return potential here is still worth the ongoing risk and volatility.

A Terrible Third Quarter
After the close Tuesday, Powerwave announced that it was going to report a horrible third quarter result. Citing significant slowdowns at AT&T (T) and T-Mobile and disruptions in the Mideast and North Africa tied to the political upheavals, management announced that revenue would come between $75 million and $79 million – more than 50% shy of the average analyst estimate of $168 million.

Read the full piece here:
Powerwave May Be About To Fade To Black

Investopedia: Hologic Holding The Line

Hologic (Nasdaq:HOLX) was an interesting undervalued health care play when the company was waiting on approval for its tomosynthesis product (a better type of breast imaging technology). With approval in hand, though, now the concerns move to customer adoption and low patient volumes throughout the testing business. Though still an attractive and high-quality franchise, the company is going to need to deliver more growth to get the Street excited about the name. 

A Fiscal Q2 That's Solid, but Not Spectacular  
Hologic delivered a modest outperformance for the fiscal second quarter. Revenue rose about 5%, fueled by nearly 9% growth in the breast health business, as the company saw good pricing and some early adoption of the tomosynthesis product. Diagnostics was still weak (down more than 1%), though, as patient visit volume has not rebounded yet. Gyn/surgical and skeletal were both up above the company average, but these are smaller units. 


Click the link for the full piece:
http://stocks.investopedia.com/stock-analysis/2011/Hologic-Holding-The-Line-HOLX-GE-SI-QGEN-GPRO-ABT-BDX0504.aspx

Investopedia: The Return Of The Norsemen?

Like its fellow Nordic tech brother Nokia (NYSE:NOK), Ericsson (Nasdaq:ERIC) can only look back fondly on the days when it was a favorite of the tech crowd. Not only did the excessive build-out of the late '90s poison the well, but Ericsson has had to deal with the rise of Chinese competitors like Huawei and aggressive marketing and pricing moves from rivals like Alcatel-Lucent (NYSE:ALU) just trying to stay in business.


A Surprisingly Strong First Quarter
Even though Ericsson is not a widely loved stock in the analyst community, the business has been staging a comeback, and the first quarter was surprisingly strong. Revenue rose 17% as reported, and although this was a 16% sequential decline, it was better than analysts had expected. It is also worth noting that on a constant-currency basis year-over-year growth was actually on the order of 25% - a pretty respectable quarter by any standards.


Continue on via the link below:
http://stocks.investopedia.com/stock-analysis/2011/The-Return-Of-The-Norsemen--ERIC-ALU-NOK-VOD-VZ0429.aspx

Investopedia: Eaton Shows Broad Recovery Continues

Conglomerates like Eaton (NYSE:ETN), Dover (NYSE:DOV) and Illinois Tool Works (NYSE:ITW) can be a pain for investors to follow with all of their moving parts. On the flip side, they can also give you a quick look at a wide range of industries and how they're performing at any point in time. To that end, while a weak aerospace industry is still a drag on Eaton, overall there continues to be a strong recovery across many industry segments. (To read more on conglomerates, check out Conglomerates: Risky Proposition?)


Good On Top, Not So Good in the Middle
Eaton seemed to have no problem booking sales in the first quarter. Overall revenue rose nearly 23% and surpassed the high end of the analyst range by about $100 million. Within the overall revenue number, the electrical business was a standpoint performer with 21% growth, and that's clearly a good thing as the electrical business is nearly 45% of the total. The hydraulic, automotive and truck segments all showed very strong growth as well, while the aerospace business was a laggard at just over 3% growth.

Top-line performance was clearly strong for Eaton, but profitability was a bit more problematic. Gross margin did increase slightly and the company did deliver over 61% growth in operating income but expectations were broadly higher than this - particularly problematic since the company surpassed revenue estimates so handily. Aerospace and automotive were relative laggards (segment operating profit margins declined), while the other units simply failed to improve as much as hoped. Still, overall segment profit growth of 46% is hardly a bad outcome. (To learn more about this type of analysis, See Fundamental Analysis For Traders.)


Please click below for the full piece:
http://stocks.investopedia.com/stock-analysis/2011/Eaton-Shows-Broad-Recovery-Continues-ETN-DOV-ITW-ABB-SI-PCAR-CMCO0425.aspx

Investopedia: This HERO's Tale Unfortunately Common

Shares of offshore driller and liftboat operator Hercules Offshore (Nasdaq:HERO) took a beating on news that the company was under investigation by the U.S. government for possible violations of the Foreign Corrupt Practices Act. While history suggests that the actual punishments for the company (if it is in fact proven guilty) will not be crippling, the issue represents a distraction for management, a black hole for company resources that will now be directed towards legal matters and a significant embarrassment in a world that seems increasingly concerned about company conduct. 


What HERO's tale highlights, though, is just how common this issue is among companies great and small in a variety of industries. It also raises a dilemma for investors - should companies toe a high moral line, even if their competitors do not (and lose business), or should companies be allowed to act according to the notion of, "When in Rome ..."?

Few Details at This Point
At this point, it is impossible to say what specific allegations are in play against Hercules Offshore, to say nothing of whether the company is actually guilty. The company does operate in overseas markets like Saudi Arabia, Malaysia, India, Mexico and Nigeria - and Nigeria in particular has long been a hotbed of corruption, especially so in the energy and energy services sectors. 



Please continue by clicking the link:
http://stocks.investopedia.com/stock-analysis/2011/This-HEROs-Tale-Unfortunately-Common-HERO-IBM-TSN-HAL-RIG0411.aspx

Investopedia: The Equipment Fallout From The AT&T / T-Mobile Deal

Mergers always stir the pot, and it is not just for the employees and customers involved in the deal. Vendors also see significant turbulence in the wake of industry consolidation. With AT&T (NYSE:T) announcing its intention to acquire T-Mobile, there will almost certainly be some changes in the telecomm equipment space. 

These two companies spent nearly $11 billion combined on capital expenditures in 2010 - close to half of the North American total. It seems unlikely that AT&T's ongoing spending needs will be as simple as "one plus one" in the future, as the company will likely see some benefit of scale and elimination of redundancies. In other words, by AT&T getting larger, the total opportunity for telecomm equipment vendors may get a bit smaller.

AT&T's Suppliers
To a certain extent, AT&T's capital expenditure plans are not going to radically change with the addition of T-Mobile. The company will continue to roll out its 4G network and will not be supporting or operating the T-Mobile network as a separate unit. That said, with more customers now under its umbrella, it stands to reason that AT&T will have to increase its overall capital expenditures (though again, not as much as simply adding T-Mobile's prior spending might suggest).

Alcatel Lucent (NYSE:ALU) and Ericsson (Nasdaq:ERIC) are two of AT&T's largest equipment vendors and there is no reason to expect this to change. More to the point, these two companies have each won about half of AT&T's 4G build orders and a larger AT&T should translate into larger overall orders. 


Please continue to the full piece:
http://stocks.investopedia.com/stock-analysis/2011/The-Equipment-Fallout-Of-The-ATTT-Mobile-Deal-ALU-ERIC-CIEN-ADTN-SWIR-PWAV-DOX0323.aspx