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AlcaLu's Stock Drop

9:00 AM -- Last week we said, rather unwisely perhaps: "From €4.95, surely AlcaLu's share price can only go up?" (See AlcaLu: Only Way Is Up?)

Guess what? It's gone down.

Today, the Alcatel-Lucent (NYSE: ALU) share price on the Paris Stock Exchange is €4.62, and while it's up by €0.01 today, it's already dropped by nearly 7 percent in 2008.

Last year it fell more than 50 percent.

AlcaLu is set to announce its fourth-quarter and full-year 2007 results on Thursday February 8. We'll be sure to come back and track the stock's progress between now and then.

In the meantime, we're making no more cavalier statements...

— Ray Le Maistre, Crystal Balls Editor, Light Reading

digits 12/5/2012 | 3:50:14 PM
re: AlcaLu's Stock Drop Well, that's the thing, you see -- predicting that the share price will go down could be equally cavalier.

Everyone is expecting Q4 and the full year report to be a stinker, and that expectation will probably be built into the current share price to some extent.

Any indication on Feb 8, or before, that things are looking better for 2008 compared with 2007 could well send the stock up -- so from this low base it's a tough call.

Whatever the outcome, it'll be another interesting year for Russo and crew, though more of a helter-skelter ride for share owners, I imagine.


Ray
gocowboys 12/5/2012 | 3:50:14 PM
re: AlcaLu's Stock Drop You could predict that it is going to go down. :-)

I would expect that their earnings announcement will not be positive, given the market and their trending.
gocowboys 12/5/2012 | 3:50:03 PM
re: AlcaLu's Stock Drop Hmmm

Recession + Russo = downward pressure :-)

You are right, it is unclear how much the forward looking expectation is baked into the current stock price. However, I have learned that ALU seems to surpass (negatively) expectations. :-)
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